Technical analytics

EURUSD market technical outlook

EURUSD

Daily chart:

Bulls show an explicit weakness so far, that allows the pair to slightly renew the lows every day. Current process still fits in with a potential execution of bullish pattern O&U, however there are more and more doubts about that. Key support for such scenario is the last structure’s low (1.1026).

H1-chart:

Local structure has small breakdowns during every new downswing (watch the round black marks) indicating that some activity of the bulls is still in place as they manage to form new local peaks after that.

Thus we can get a new upswing from current levels in direction of the resistance zone 1.1100.

Conclusions:

Main scenario: Growth towards 1.1100 and then new swing to the downside.

Alternative scenario: Fall of the euro to 1.1026.

Trading recommendations:

  1. Longs from 1.1100.

  2. Shorts from 1.1100 to 1.1026.