Technical analytics

EURUSD market technical outlook

EURUSD

Daily chart:

A potential “bullish flag” is being formed at the tip of upswing (a pattern of continuation of the quotes’ growth). We can’t consider yesterday’s inside bar as a short-setup since the quality of this bar close looks unconvincing for reversal of such a strong movement, that the single currency has at the moment.

H1-chart:

Local structure keeps upward tone of the trend so far, however we see, that bulls were unable to renew the high, that is a necessary condition for continuation of the bullish tendency.

At the same time we can discuss downward reversal only when buyers lose support at the closest low of the structure (1.1289, watch the red arrow).

Thus we can say about a chance for attack of the resistance 1.1347 from current levels until the 1.1289 level is unbroken.

 

Conclusions:

Main scenario: Attempt to move upwards in direction 1.1347.

Alternative scenario: Decline under 1.1289 and further movement to the 1.1242-1.1250 zone.

Trading recommendations:

  1. Above 1.1289 - longs towards 1.1347.

  2. Below 1.1289 - shorts towards 1.1242-1.1250.