EUR/USD: Could the bulls begin to think about the pressure on 1.20 again? [Video]

Richard Perry Independent Analyst

EUR/USD

The unwinding correction on EUR/USD has been testing key supports in recent days, but for now these supports are holding. Throughout July and August, the key support area 1.1695/1.1750 build foundations for the move above 1.2000. Losing this support would be s key shift in outlook. For now it is holding, but with the confluence of the big four month uptrend (today at 1.1780) also being tested, this looks to be a key crossroads. A positive candle yesterday and early gains today seem to be coming with a stabilisation of broad market sentiment that is dragging on the dollar (helping EUR/USD higher). However, this all comes ahead of the ECB meeting today, which could drive a significant move on EUR. We expect a significant rise in volatility again and how the market reacts to 1.1695/1.1750 will be key. A closing breach (on EUR selling pressure due to the ECB being deems as “dovish”) would open 1.1500. However, holding the uptrend after today would be a significant positive for EUR/USD and the bulls can then begin to think about pressure on 1.2000 again. Initial resistance 1.1865/1.1880.

Author

Richard Perry

Independent Analyst

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