EUR/USD continues its bearish journey on the daily chart. The pair produced a strong bearish candle yesterday as well followed by an inside bar. The candle closed within a level of daily support, where the price had a bounce last month. If the level gets breached, the price may head towards the South with stronger bearish momentum since the price may support its next support at the last swing low, which offers a handful of pips. Major intraday charts are on consolidation. A lot depends on them. Let us have a look at those three charts.
Chart 1 EUR/USD Daily Chart
The chart shows that the price found its resistance at the level of 1.12245. Upon producing a bearish engulfing candle, the price has been heading towards the South. The pair is trading around the level of 1.10475, where the price had made a bullish breakout and made a strong bullish move after a pullback. The buyers would love to get a bullish reversal candle here again. However, the momentum is with the bear, thus, the pair may make a bearish breakout at the level and head towards the level of 1.10000.
Chart 2 EUR/USD H4 Chart
The H4 chart shows that the price has kept making lower lows. It had its last bounce at the level of 1.10360. The level of 1.10560 has been working as a level of resistance. The level has already produced a bearish engulfing candle. If the price keeps going towards the downside and makes a breakout at the level of 1.10360, the sellers may go short on the pair and drive the price towards the South further. The price may find its next support at the level of 1.10000 on the H4 chart as well.
Chart 3 EUR/USD H1 Chart
The price after being bearish made an upward correction. It found its resistance at the same level as the H4 chart. The way the price has been heading towards the South, it does not seem it would make a bearish breakout. If it does, the sellers may go short on the pair. On the other hand, if it bounces at the level of support again, the buyers may look for long opportunities on the minor charts. This may make the pair produce a corrective bullish candle on the daily chart in the end.
The daily and the H4 chart look bearish. The H1 chart looks a bit neutral. Considering these three charts, the pair has more chances to get bearish. A lot depends on the H1 chart’s price action though. If it gets bearish, the pair may continue its bearish momentum today as well.
Risk Warning: CFD and Spot Forex trading both come with a high degree of risk. You must be prepared to sustain a total loss of any funds deposited with us, as well as any additional losses, charges, or other costs we incur in recovering any payment from you. Given the possibility of losing more than your entire investment, speculation in certain investments should only be conducted with risk capital funds that if lost will not significantly affect your personal or institution’s financial well-being. Before deciding to trade the products offered by us, you should carefully consider your objectives, financial situation, needs and level of experience. You should also be aware of all the risks associated with trading on margin.
Recommended Content
Editors’ Picks
EUR/USD steady below 1.0800 after US PCE meets expectations
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair barely reacted to US PCE inflation data, with the Greenback shedding some pips. Fed Chair Jerome Powell set to speak ahead of the weekly close.
GBP/USD hovers around 1.2620 in dull trading
GBP/USD trades sideways above 1.2600 amid a widespread holiday restraining action across financial markets. Investors took a long weekend ahead of critical United States employment data next week. Fed Chair Powell coming up next.
Gold price sits at all-time highs above $2,230
Gold price holds near a fresh all-time high at $2,236 in thinned trading amid the Easter Holiday. Most major world markets remain closed, although the United States published core PCE inflation, the Federal Reserve’s favorite inflation gauge.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.