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 might 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, notably with the U.Ok. and China, have renewed the attraction of the U.S. greenback earlier this month.
A number of snags in financial knowledge, notably in CPI and retail gross sales reviews, pressured the Buck to retreat previously week although. This took EUR/USD again as much as the damaged help zone which occurs to line up with the 61.8% Fibonacci retracement stage.
Will it maintain as resistance this time?
Keep in mind that directional biases and volatility circumstances in market worth are sometimes pushed by fundamentals. When you haven’t but finished 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 each day basic 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 world of curiosity so as to add to its power as a ceiling, presumably sending EUR/USD again all the way down to the swing low close to S1 (1.1060) subsequent. Preserve a watch out for sustained bearish stress that would even prolong the drop to the bearish targets at S2 (1.0960) then S3 (1.0860).
Then again, look out for lengthy inexperienced candlesticks busting above the previous help zone, doubtlessly lifting the pair again as much as the following resistance at R2 (1.1360) close to the swing excessive then R3 (1.1460).
Whichever bias you find yourself buying and selling, don’t overlook to follow correct danger administration and keep conscious of top-tier catalysts that would affect general market sentiment!
Disclaimer:
Please bear in mind 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 spotlight potential areas of curiosity that different merchants could also be observing. Finally, all buying and selling selections, danger administration methods, and their ensuing outcomes are the only accountability of every particular person dealer. Please commerce responsibly.
