It looks like EURUSD is showing some sings of exhaustion. It has been on the rise consistently since it formed a base at around 1.1600. After the support level was hit, the price went up to 1.1950 before slowing down the momentum.
After this close to 400 pips rise, we saw price going lower to 1.1850, where it currently resides.
Two possible scenarios are possible now, since price seems to be getting locked in a range.
Scenario 1:
Price going lower to the level of 1.1800, where stands the closest support level. If price starts showing some signs of hesitation like a bearish rejection price action pattern or a bullish confirmation pattern, this will give market participants green light to go long. A possible level to target will be 1.1900 initially and then potentially 1.2000.
Scenario 2:
Price continues its fall to 1.1800. and breaks below this level, then there is a chance it continues its fall towards 1.1700 initially and then perhaps even lower towards 1.1600 again. It is important to monitor the price action around the 1.1800 level and then if price drops below it and exhibits a bullish rejection of that level, this could lead to a lot of sellers joining the sellout.
This material is written for educational purposes only. By no means do any of its contents recommend, advocate or urge the buying, selling or holding of any financial instrument whatsoever. Trading and Investing involves high levels of risk. The author expresses personal opinions and will not assume any responsibility whatsoever for the actions of the reader. The author may or may not have positions in Financial Instruments discussed in this newsletter. Future results can be dramatically different from the opinions expressed herein. Past performance does not guarantee future results.
Recommended Content
Editors’ Picks
EUR/USD regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold climbs above $2,340 following earlier drop
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.