EURUSD has bounced from sub 1.0900 levels boosted by monthly profit taking and good German IFO. Additionally lower oil prices had a positive impact on CPI number (Core CPI). We are slowly entering into thin liquidity month (August) . Liquidation sales usually happen close to holiday season and the overall volume traded is usually 1/3 normal volume.
Technically EURUSD is rejecting POC zone (equidistant channel top, 38.2, previous retest, historical sellers) which marks 1.0980-90 area. The pair is held within the angled bearish zig zag which accounts for a slow grinding down trend. Rejection from the zone should target 1.0950-30 and the close below 1.0930 targets 1.0895.Momentum breakout and/or 4h close below 1.0930 will target 1.0850-30 target zone which makes L5 and equidistant channel bottom.
In order for this setup to be valid 1.1020 should hold.
The analysis and the article presents Nenad's opinion. Remember, financial trading is highly speculative & may lead to the loss of your funds. Proper risk management is the Holy Grail of trading.
Recommended Content
Editors’ Picks
EUR/USD stays near 1.0850 after US housing data
EUR/USD trades in negative territory at around 1.0850 in the early American session on Tuesday. The US Dollar preserves its strength following the upbeat housing data and makes it difficult for the pair to gain traction. The two-day Fed meeting goes underway on Tuesday.
GBP/USD recovers modestly from two-week lows, trades near 1.2700
GBP/USD staged a modest rebound after touching its lowest level in two weeks below 1.2700 on Tuesday. The cautious market mood helps the US Dollar hold its ground and limits the pair's upside as markets gear up for the Fed and the BoE policy meetings.
Gold stays in daily range near $2,160
Gold fluctuates in a narrow band at around $2,160 for the second consecutive day on Tuesday. Ahead of the Fed's policy announcements, the benchmark 10-year US Treasury bond yield moves sideways near 4.3% and limits's XAU/USD's volatility.
Why is the crypto market crashing?
The two most important contribution to the ongoing bull market is the meteoric rise in Bitcoin due to the ETF approval and the sudden interest spike in Solana ecosystem. But the recent move suggests that the upward momentum is dissipating and a correction looms.
Shocker, Yen weakens after BoJ hike
The Bank of Japan (BoJ) scrapped its negative rate policy, raised the rates from -0.10% to 0%, ditched its YCC policy and ended the purchases of ETF and Japanese real estate investment trusts.