Is EUR/USD about to achieve traction on its downtrend after a latest breakout?
With EUR scoring 7.2/10 versus USD’s 8.1/10 on this week’s FX Fundies Cheat Sheet, plus a confluence of technical resistance ranges close by, EUR/USD may very well be poised to renew its selloff to this month’s lows.
Right here’s an space of curiosity I’m watching on the 4-hour time-frame.
EUR/USD 4-hour Foreign exchange Chart by TradingView
Constructive developments in U.S. commerce talks, significantly with the U.Ok. and China, have renewed the attraction of the U.S. greenback earlier this month.
A couple of snags in financial knowledge, notably in CPI and retail gross sales studies, pressured the Dollar to retreat prior to now week although. This took EUR/USD again as much as the damaged assist zone which occurs to line up with the 61.8% Fibonacci retracement degree.
Will it maintain as resistance this time?
Keep in mind that directional biases and volatility situations in market worth are usually pushed by fundamentals. When you haven’t but performed your fundie homework on the euro and the U.S. greenback, then it’s time to take a look at the financial calendar and keep up to date on every day elementary information!
The 100 SMA remains to be above the 200 SMA on this time-frame however simply barely, because the the hole between the shifting averages has narrowed sufficient to trace at a probable bearish crossover.
These technical indicators additionally line up with the realm of curiosity so as to add to its power as a ceiling, probably sending EUR/USD again right down to the swing low close to S1 (1.1060) subsequent. Hold a watch out for sustained bearish strain that would even lengthen the drop to the bearish targets at S2 (1.0960) then S3 (1.0860).
However, look out for lengthy inexperienced candlesticks busting above the previous assist zone, probably lifting the pair again as much as the subsequent resistance at R2 (1.1360) close to the swing excessive then R3 (1.1460).
Whichever bias you find yourself buying and selling, don’t neglect to follow correct danger administration and keep conscious of top-tier catalysts that would affect total market sentiment!
Disclaimer:
Please remember that the technical evaluation content material supplied herein is for informational and academic functions solely. It shouldn’t be construed as buying and selling recommendation or a suggestion of any particular directional bias. Technical evaluation is only one facet of a complete buying and selling technique. The technical setups mentioned are supposed to focus on potential areas of curiosity that different merchants could also be observing. Finally, all buying and selling choices, danger administration methods, and their ensuing outcomes are the only real accountability of every particular person dealer. Please commerce responsibly.
