Technical analytics

EURUSD market technical outlook

EURUSD
Daily chart:
Euro is almost reached another round level 1.1800 and we have solid overbought conditions. Market requests a correction, however we shouldn’t be in a hurry expecting it during such a strong trend - the upper Bollinger band was broken again yesterday and ADX indicator still resides in a trending zone. Therefore massive expectation of pullback will probably trigger one more upward wave in direction 1.1900 and 1.2000.

H4-chart:

We note local dynamic support 1.1659 (middle Bollinger band), where bulls can buy the euro again in direction 1.1850 and 1.1900. At the same time a key resistance for such scenario is 1.1793-1.1800 - it’s easy to notice that ADX is shifting to correction already that may point to declining trending potential of the market.

H1-chart:

Lower Bollinger band (1.1722 level) remains a strong support for uptrend, where we can observe a 4-hour consolidation of the market before probable upward movement.

However here we also can see a steep decrease of trending pressure from ADX indicator, therefore a potential break of 1.1774 is in big question.  

Conclusions:

Main scenario: Flat in the 1.1772-1.1774 range.

Alternative scenario: Corrective decline to 1.1659.

Trading recommendations:

  1. In short-term - trading inside the 1.1722-1.1774 range.

  2. In medium-term - longs from 1.1772 and 1.1659.