EUR/USD Price Analysis: Bears need to show up or face a short squeeze

EUR/USD bears could be about to make their moves.
Bulls eye a short squeeze on failures by the bears to hold on at resistance.

Ross J Burland FXStreet

EUR/USD is a broken down market on the backside of the June rally as it breaks structure on the hourly time frame to the downside opening risk of a deeper correction for the days ahead.

The following analysis illustrates the prospects of a move to break 1.0850 and to target 1.08 the figure and 1.0770s below it.

EUR/USD H1 chart

The price has corrected the sell-off and the bulls are wearing out at a 50% mean reversion level. However, the bears need to turn up in force at this juncture and if they do, there will be prospects of a break below the prior lows as a break in structure to open risk towards 1.0800 and lower.

On the flip side, there will be p[prospects of a move back to fill the imbalance between 1.0920 and 1.09025 that is still left behind in Friday's sell off the Bears do not commit at this turning point:

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

AUD/USD stabilizes above two-week low/0.6950 as traders await US election results

AUD/USD edges higher in the Asian session on Wednesday, recovering slightly from a two-week low touched on a less hawkish RBA reaction the previous day. Hopes for Iran diplomacy undermine the safe-haven US Dollar and support the currency pair, though the upside remains capped as traders await US midterm election results.

USD/JPY retreats from three-week top, slips below 158.50 amid intervention risks and softer USD

USD/JPY slides below 158.50 in the Asian session on Wednesday, snapping a two-day winning streak to hit a near three-week high the previous day, as intervention risks support the Japanese Yen. Meanwhile, the US Dollar remains on the back foot amid hopes for Iran diplomacy, further weighing on the currency pair as traders brace for some volatility surrounding US midterm election results.

Gold consolidates below $3,950 as Fed hike bets counter softer USD ahead of US election results

Gold struggles to capitalize on the previous day's bounce from sub-$3,900 levels, oscillating in a range during the Asian session on Wednesday as traders brace for short-term market volatility surrounding US midterm election results. Meanwhile, hopes for Iran diplomacy weigh on the safe-haven US Dollar and support bullion, though upside remains capped amid Fed rate hike bets.

Ethereum: US-led selling keeps ETH below $2,309 realized price

Ethereum (ETH) faces pressure near $2,300 on Tuesday as it struggles to recover its realized price. The top altcoin fell below its realized price, or investors' average on-chain cost basis, at $2,309 following the $6.3 billion Binance hack last Thursday.

US Midterms: Can Wall Street rally despite AI debt and credit risks?

Political uncertainty may be coming to an end, but the real question for investors is whether the technology sector can sustain its enormous spending commitments. The US midterm elections are arriving at an interesting moment for financial markets.

The 2% inflation target came from a throwaway remark. It now moves trillions

The Federal Reserve's 2% inflation goal grew out of an off-the-cuff remark by a New Zealand politician in 1988. Bond investors still price long-term US debt as if 2% holds, so a change in how the Fed measures inflation would move markets.