With falling US markets and equity, EURUSD are also showing signs of reversal after a long bullish rally. As FED cuts interest rates, it is likely to have a significant impact on the dollar. This is effect is immediately shown in the dark cloud cover formed in the 4 hour chart at the last 2 trading sessions of the previous week, both of which have very high volume. To add on, RSI is also very high within the overbought range as it is for the past trading week, suggesting a possible reversal. The significance of this 'dark cloud cover' is particularly high as most the previous pullbacks on this rally have always been a mere 1 bar tweezer top formation, and has continued to rally upwards after the support.
In line with this, the COVID-19 situation is also likely to weaken the dollar further, with cases emerging in LA and other major cites of the US.
Thank you all so much for reading, do let me know what you think!
In line with this, the COVID-19 situation is also likely to weaken the dollar further, with cases emerging in LA and other major cites of the US.
Thank you all so much for reading, do let me know what you think!