Technical analytics

EURUSD market technical outlook

EURUSD

Daily chart:

Potential pressure of sellers is growing at support zone 1.1616-1.1680. This region is a boundary of the lower Bollinger bands that will create premises for an upward reversal. Thus we can also note a key and forecast importance of 1.1616-1.1680 amid growth of ADX in favor of bears.  

H4-chart:

The lower Bollinger band was broken earlier and it’s one of the most important signals of the main tendency extension. Technical upward correction has reached PPZ 1.1680-1.1700, where sell-offs might resume (black arrow).

In case the price settles above 1.1700, a pullback may reach the middle Bollinger band (1.1731-1.1754), where the primary offer zone resides (red trajectory).

H1-chart:

Low Friday’s trending activity of ADX indicator may suggest a flat market today. In case of a low volatility the euro will hover in the area of the middle Bollinger band (1.1680-1.1685). And in case of buoyancy, the boundaries of the Bollinnger bands might be tested (support 1.1647, resistance at 1.1712-1.1720).

 

Conclusions:

Main scenario: Flat in the 1.1647-1.1720 range.

Alternative scenario: Break of support 1.1647 and decline to 1.1600.

Trading recommendations:

Shorts from 1.1720 to 1.1647 and 1.1600.

 

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