Technical analytics

EURUSD market technical outlook

EURUSD

Daily chart:

Buyers showed tangible weakness at the area of psychological resistance 1.10. They willingly sell out the euro here that was predictable. Now we can get a development of downward wave in direction of the middle Bollinger band (1.0862).

H4-chart:

We note that important dynamic resistance level - local upper Bollinger band resides at the 1.1024 mark suggesting a probability of testing this zone before a downward reversal.

Sell targets from 1.1024 might be support levels 1.0918, 1.0862 and 1.0805.

H1-chart:

The range of probable intraday consolidation again will be limited by the scope of Bollinger bands: 1.0948-1.0992.

However ADX indicator is in active zone, therefore we can’t rule out a higher volatility today.

 

Expectations:

Main scenario: Growth to 1.1024 and then downward reversal in direction 1.0948.

Alternative scenario: Mixed movements inside the 1.0948-1.0992 range.

Trading recommendations:

  1. Longs to 1.0992 and 1.1024.

  2. Shorts from 1.1024 to 1.0948.

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