Technical analytics

EURUSD market technical outlook

Daily chart:

The euro is traded above the middle Bollinger band having broken yesterday the 1.1806-1.1848 zone. Thus, the bulls have good odds to retain mid-term pressure in direction of the upper boundary of the range (1.1963-1.2017). An optimum trajectory of the pair for traders would be a pullback to the middle band for retest that would allow them to get better entry points. 

 

H4-chart:

Tangible pressure from the ADX indicator is concentrated near the local resistance zone 1.1869-1.1889 suggesting its probable break by the buyers. Their next target will be the 1.1963-1.1980 zone (black arrow).

Should a break not occur today, the euro’s rate may pull back to the middle Bollinger band (1.1806, red trajectory).  

 

H1-chart:

Trending activity of the ADX indicator is observed on the hourly chart as well, therefore a major scenario today remains growth of the rate from current levels (black arrow). Key support zone is 1.1848-1.1859 (middle Bollinger band).

 

Conclusions:

Main scenario: Extension of growth in direction 1.1963-1.1980.

Alternative scenario: Decline to 1.1806 followed by an upward reversal.

Trading recommendations:

Longs from 1.1848-1.1859 to 1.1963-1.1980.

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