The hammer
candlestick visible on the daily time-frame above the support at 1.0520 had the
expected consequence and EUR/USD briefly moved to the upside before bouncing
off from the resistance at 1.0680 and moving to the downside again. After a short
sideways consolidation, today the pair broke below the support at 1.0600 and
continued falling, almost reaching the previous low at 1.0520. The question is
what will happen once the pair does reach that level? One of the possible
scenarios is that it will bounce off from it again, forming a clear double
bottom and a signal for a new move to the upside. On the other hand, if EUR/USD
finally breaks below the aforementioned support, it will likely continue
falling towards the next support level at 1.0450.
It's consolidating above 1.0520.
ReplyDeleteNext support zone can be found at 1.050/049
ReplyDeleteThe pair broke below 1.0520 and is at 1.0500.
ReplyDeleteGood analysis, very helpful!
ReplyDeleteVery interesting read.
ReplyDeleteGood point! Important levels to keep in mind.
ReplyDelete