EUR/USD Price Analysis: Bulls could be about to make a serious move, but bears could pounce
|- EUR/USD short squeeze could be put on in the coming day/sessions.
- However, if the bears commit at a 38.2% or below 1.0625, then there will be prospects of a move into the 1.0580/70s.
EUR/USD is down low with respect to the prior day's range following three days of traders shorting the pair. The bias is bullish USD but a failed break of last week's lows could be a recipe for a sizeable correction to the upside for the days ahead. The following illustrates the week's template and prospects of a short squeeze following three days of shorts (S1, S2 & S3).
EUR/USD H4 chart
EUR/USD M15 chart
Will Thursday be the first day of longs, a higher close in other words, (L1)?
If so, the thesis for the day ahead would be to buy the dip depending on what session the opportunity comes in, if at all.
For the immediate future, we could see a downside extension as follows:
If the bears commit at a 38.2% or below 1.0625, then there will be prospects of a move into the 1.0580/70s for the sessions ahead.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.