Technical analytics

EURUSD market technical outlook

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.


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.


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.  


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.