EURUSD has broken through 1.1460 which was preceded by China devaluating its currency then intervening massively in FX market. Is this a start of currency war? It remains to be seen. October 1998 saw very turmoil equity market so Global equity markets could drive FX moves near term. “Black Monday” saw EURUSD topping 1.17 levels and USD index tanked by 1.7 %.
Yesterday we have witnessed strong correction and EURUSD is in retracement mode. We cannot talk about reversal until retracement has been invalidated first.
EURUSD is showing a general uptrend which was confirmed by breaking W 1 2 3 pattern (1.1250) and extension above 1.1460 and 1.1535 turned market attention to 1.1700-1.1800.
3 most important supports now are: 1.1350, 1.1298 and 1.1250.
EURUSD has broken through L3 which stands with confluence at 1.1460 and it is going down towards 78.6 and 88.6 fib retracement. 78.6 stands at 1.1348 previous swing and 1.1298 is previous breakout point which stands in confluence with 88.6 %. Daily W trendline is shown on the chart and it stands at 1.1250.
So those are 3 levels we should be paying attention to. Bounce off these levels could return the pair back to 1.1460 and above finally targeting 1.1620-1.1750. But if 1.1250 ultimately fails to hold the near term scope for further bullish rally seems lost.
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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