The Three Drives Pattern is forming on EURUSD for now, and I will expect for a bullish movement to the resistance 1.1530. Btw, there are also 1.1400 and 1.1480 levels of resistance. The nearest support is 1.1140.
The EURUSD bounce to the upside, from the 1.1200 level, but it is a normal price behavior after the strong drop. The pullback may end and the pair may try to break below the 1.1200 level to continue lower. On the other hand, if the price keeps pulling back, the 1.1300 zone may act as resistance.
Problem with traders is not the analyses it's the management. Buying dips is easier said than done. How far the dip and swing on your trade is the problem. There's a way to analyze this. I would like to see more micromanaged technical analyses and no objective buy and Sell theories that when the market goes in that favor all of a sudden all the prospects post come out saying see I was right. Yes I guess you were.
The Australian Dollar has outperformed for a second day, presently near high.AUD-USD posted a 57-day at 0.7047, extending gains seen from yesterday’s at 0.6956, seen in the immediate wake of the RBA’s rate cut. Markets had mostly priced-in the move, with Aussie money markets having factored in 85% odds for it. Given this, along with some cautiously upbeat remarks on the outlook in RBA Governor Lowe’s statement, and the thawing in US-China tensions, the scene was set for a rally in the Australian Dollar. AUDUSD has support at 0.7017-20.Next target will be 0.7072 if breakup over 0.7047 line.
The EUR/USD current position is 1.1130. I'd consider the support 1.1110 as a short signal point in case of its breaching. Target for bears is 1.0900. The resistance 1.1150(MA25) will be the first significant level for bulls. The next one is 1.1190(MA55).
EUR/USD overview. The pair started correction after MA150(1D) testing in 0.5Fib area(1.1150). The bullish strong trend direction is forming. RSI (1D) shows 56 as a sign of market uncertainty. The news background for USD today is Oil news.
EUR/USD analysis: 1D: The pair touched MA150 level and fell to the current 1.1115 as a correction after impulse from 1.0880. The support level is 0.382Fib at 1.1085. The resistance level at 0.5Fib (1.1150) can be tested again as the current bullish trend continuation attempt.
EUR/USD signal points: H4: MA25 and MA55 crossed both MA150 and MA250 as a signal to buy, but the price will probably test the MA55(1.1080) level firstly, because of MA25 level breaching. 1D: MA150 level will be a signal point for bulls in case of it's breaching. There's also a probability of 0.382 (1.1080) level testing as a correction completion. And this level will be a signal point for bears.
The EURUSD completes five consecutive days falling and breaks below the 1.1000 level. The pair may continue falling, but a pullback to the 1.1000 level is possible. To the downside, its next support could be the 1.0900 level. Above the 1.1000 level, the 55 day EMA may act again as resistance as it did on the last pullback.
The EURUSD has been very volatile, leaving behind long shadows on the daily candle in both directions and keeping a small real body around the 1.1000 zone. From the current levels, the EURUSD may head in any direction, with the 1.1100 acting as resistance and the 1.0900 as support.
Perhaps, to continue the downward trend in EURUSD and GBPUSD pairs, all that was missing was the appearance of a new monthly candle on the chart. After the recent impressive movement of the dollar to strengthen, finally, there was an equally impressive correction. And if we want to enter the current trend, we are waiting for the best levels to enter. What is the best level to enter the current trend?..? The one that was formed as a result of the rollback. And here it is, this very rollback has occurred, or is currently happening. And for the change of the trend (trend), the reasons are not yet visible. Why do bulls buy EURUSD and GBPUSD? Just because prices are low enough? But the trend is more likely to continue than change (one of the postulates of trading on the stock exchange). Yes, prices are low. But if you look at the overall global situation, it seems that the path of least resistance in the main pairs is the South (strengthening of the dollar). Why? Let's remember the end of the 2008 crisis. During the long recovery of the world economy, and in particular the economy of the European Union, Italy was in the most deplorable state. However, the crisis subsided, and the country that had just been at the top of the list of the next bankrupts suddenly continued to exist as if nothing had happened. But now it's time for the next major crisis, and in Europe, the first country to crack the seams is Italy, and Spain is next. The prospects are not rosy for the EU. In addition, at the height of the pandemic, the once United Europe suddenly distanced itself from its member countries. Without showing any solidarity or signs of unity, each country began to take care only of itself, forgetting all obligations. When the crisis subsides and countries begin to recover, there will be difficult times for the EU. It is time to test its strength, which, as you can see, is very fragile. You will immediately remember the lack of assistance to each other, there will be reproaches against the participating countries and Brussels, in particular. As an example, they will start to cite the experience of the UK, which, although painful, still leaves the European Union. By the way, it is worth saying that, after leaving Europe, the Bank of England will get its hands on the levers of managing its economy. London's dependence on Brussels will disappear. Other countries in a United Europe may want to follow the example of great Britain. Against the background of the events that have occurred, this is quite likely, and the most realistic scenario. Why do bears sell EURUSD and GBPUSD? First, for the reasons described above. And second, why should the dollar weaken? Just because the fed is pouring trillions of liquidity into the economy? But the EU does it, and so does Britain... In addition, the crisis has not been canceled, and the improving situation in China is not yet a reason for risk-taking. We should not forget that the pandemic is still spreading. Countries close not only themselves, but also cities within countries. Emergency measures are being introduced in cities. The consequences for all the world's economies will be astoundingly large. Buying risky assets (and the Euro and British pound are risky assets in relation to the us dollar) is not a rational decision today. Well, if you sell, then sell on growth. And so, this growth (correction\rollback) inside the downward trend was formed. And that means it's time to sell.
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