Yesterday, everything revolved exclusively around the meeting of the Board of the Bank of England, the results of which were the reason for the sharp weakening of the single European currency. More precisely, the pound was falling, and through the dollar index, it already pulled other currencies with it. And it’s not so much about the increase in the refinancing rate by twenty-five basis points, but rather about the subsequent comments. Despite another increase in inflation, the British regulator announced its readiness to pause the process of tightening monetary policy. It turns out that the Bank of England is not so much concerned with combating the rise in consumer prices as it follows in the wake of larger central banks. Even despite the fact that this does not correspond to the economic situation developing in the UK itself. Which frightened investors.
So the euro’s fall was not only impressive, but also had nothing to do with the economic dynamics directly in the eurozone itself. Moreover, the single currency has gone beyond the range in which it has been for almost a whole month. Based on this, it can be assumed that today we are waiting for a kind of rebound, and a return to the usual boundaries from 1.0950 to 1.1050.
During an intensive downward movement, the EUR/USD pair reached the 1.0900 level, which points to a decline in the volume of short positions. As a result, a slowdown-pullback occurred relative to this level.
On the four-hour chart, the RSI indicator is moving in the lower area of 30/50, which corresponds to the downward cycle, as well as the touch of the 1.0900 level.
On the daily chart, two out of three of the Alligator’s MAs intertwined, which could be an initial sign of a slowdown in the medium-term trend. On the 4-hour chart, it reflects a bear cycle, which corresponds to the current movement.
Outlook
In this situation, traders are considering a scenario of forming a pullback, which will eventually return the euro to its previous price ranges. However, if the pullback turns out to be false and the quote remains below the 1.0900 level in the daily period, then in this case, a technical signal about forming a full-scale correction through an uptrend may emerge.
The comprehensive indicator analysis in the short-term points to a pullback. In the intraday period, the bearish sentiment is still in force.
The material has been provided by InstaForex Company – www.instaforex.com
Yesterday, everything revolved exclusively around the meeting of the Board of the Bank of England, the results of which were the reason for the sharp weakening of the single European currency. More precisely, the pound was falling, and through the dollar index, it already pulled other currencies with it. And it’s not so much about the increase in the refinancing rate by twenty-five basis points, but rather about the subsequent comments. Despite another increase in inflation, the British regulator announced its readiness to pause the process of tightening monetary policy. It turns out that the Bank of England is not so much concerned with combating the rise in consumer prices as it follows in the wake of larger central banks. Even despite the fact that this does not correspond to the economic situation developing in the UK itself. Which frightened investors.
So the euro’s fall was not only impressive, but also had nothing to do with the economic dynamics directly in the eurozone itself. Moreover, the single currency has gone beyond the range in which it has been for almost a whole month. Based on this, it can be assumed that today we are waiting for a kind of rebound, and a return to the usual boundaries from 1.0950 to 1.1050.
During an intensive downward movement, the EUR/USD pair reached the 1.0900 level, which points to a decline in the volume of short positions. As a result, a slowdown-pullback occurred relative to this level.
On the four-hour chart, the RSI indicator is moving in the lower area of 30/50, which corresponds to the downward cycle, as well as the touch of the 1.0900 level.
On the daily chart, two out of three of the Alligator’s MAs intertwined, which could be an initial sign of a slowdown in the medium-term trend. On the 4-hour chart, it reflects a bear cycle, which corresponds to the current movement.
Outlook
In this situation, traders are considering a scenario of forming a pullback, which will eventually return the euro to its previous price ranges. However, if the pullback turns out to be false and the quote remains below the 1.0900 level in the daily period, then in this case, a technical signal about forming a full-scale correction through an uptrend may emerge.
The comprehensive indicator analysis in the short-term points to a pullback. In the intraday period, the bearish sentiment is still in force.
The material has been provided by InstaForex Company – www.instaforex.com
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