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.
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