Technical analytics

EURUSD market technical outlook

EURUSD

Daily chart:

Yesterday’s forecast on downward bounce of the price off resistance at the psychological level 1.2000 panned out. By the end of the session a bearish pinbar was formed being a sell signal that might trigger a new downward wave.

ADX indicator keeps the intrigue staying in a trending zone that may signify bulls are poised to a new attempt of settling above 1.2000-1.2009.

Thus it’s a key zone and sell-offs from this zone are highly likely. Bears’ target is the middle Bollinger band.

H4-chart:

Locally the major continues to trade up. Thus we can’t rule out one more testing of 1.1992-1.2000 (upper Bollinger band). Nevertheless this area will remain attractive for limit sellers.

H1-chart:

Also we need to note an intraday resistance at the middle Bollinger band (1.1956-1.1960), where we can get sell-offs during work off of the earlier broken lower Bollinger band. Intraday support for the pair is 1.1915-1.1917.

 

Conclusions:

Main scenario: Decline from current levels in direction 1.1915-1.1917.

Alternative scenario: Growth to 1.1992-1.2000, then downward reversal in direction 1.1915-1.1917.

Trading recommendations:

Shorts from 1.1960 and 1.2000 in direction 1.1915.

 

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