The EUR/USD pair has been in a tight bear channel since the high of July from the area of 1.1230-1.1100. The bulls recently formed a parabolic wedge bottom (green line). However, the channel down is tight. Most parabolic wedges are minor reversals that lead to sideway trading rather than a pullback. The bears want a downside breakout below the end of July low, the bottom of the most recent buy climax up to the July high.
It is a busy day for the EUR/USD pair , with manufacturing sector PMIs from the euro area and the US in focus. Numbers from China weighed this morning. From the technical point of view, U.S. Dollar Index remains stuck below the resistance in the 1.1053 1.1087 range. The 100 MA at 1.0982 serves as an additional resistance level.
The bears will probably be disappointed around the current price level, just like on July 28th. The bulls want a double bottom and a reversal up with July 28th; nevertheless, they need a strong reversal bar, or else traders will assume more sideways trading is likely.
The EUR/USD pair has faced strong resistances at the levels of 1.1054 because support had become resistance on August 1, 2023.So, the strong resistance has been already formed at the level of 1.1054 and the pair is likely to try to approach it in order to test it again.
However, if the pair fails to pass through the level of 1.1054, the market will indicate a bearish opportunity below the new strong resistance level of 1.1054 (the level of 1.1054 coincides with a ratio of 38.2% Fibonacci). Moreover, the RSI starts signaling a downward trend, as the trend is still showing strength above the moving average (100) and (50).
Thus, the market is indicating a bearish opportunity below 1.1054 so it will be good to sell at 1.1054 with the first target of 1.0945. It will also call for a downtrend in order to continue towards 1.0881. The daily strong support is seen at 1.0881. On the other hand, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the level of 1.1103.
The material has been provided by InstaForex Company – www.instaforex.com
Overview :
The EUR/USD pair has been in a tight bear channel since the high of July from the area of 1.1230-1.1100. The bulls recently formed a parabolic wedge bottom (green line). However, the channel down is tight. Most parabolic wedges are minor reversals that lead to sideway trading rather than a pullback. The bears want a downside breakout below the end of July low, the bottom of the most recent buy climax up to the July high.
It is a busy day for the EUR/USD pair , with manufacturing sector PMIs from the euro area and the US in focus. Numbers from China weighed this morning. From the technical point of view, U.S. Dollar Index remains stuck below the resistance in the 1.1053 1.1087 range. The 100 MA at 1.0982 serves as an additional resistance level.
The bears will probably be disappointed around the current price level, just like on July 28th. The bulls want a double bottom and a reversal up with July 28th; nevertheless, they need a strong reversal bar, or else traders will assume more sideways trading is likely.
The EUR/USD pair has faced strong resistances at the levels of 1.1054 because support had become resistance on August 1, 2023.So, the strong resistance has been already formed at the level of 1.1054 and the pair is likely to try to approach it in order to test it again.
However, if the pair fails to pass through the level of 1.1054, the market will indicate a bearish opportunity below the new strong resistance level of 1.1054 (the level of 1.1054 coincides with a ratio of 38.2% Fibonacci). Moreover, the RSI starts signaling a downward trend, as the trend is still showing strength above the moving average (100) and (50).
Thus, the market is indicating a bearish opportunity below 1.1054 so it will be good to sell at 1.1054 with the first target of 1.0945. It will also call for a downtrend in order to continue towards 1.0881. The daily strong support is seen at 1.0881. On the other hand, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the level of 1.1103.
The material has been provided by InstaForex Company – www.instaforex.com
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