The US Dollar has been the driving force behind price action in EUR/USD.
DXY - we are trading within a bearish channel formation. Trend line support is located at 102.50. Trend line resistance is located at 103.66.
We will form a bullish cypher pattern known as a Butterfly formation at 102.70. Bespoke support is located at 102.70.
EUR/USD - reflecting this analysis back onto the major currency pair, and the immediate bias is mildly bullish.
The daily chart highlights a cypher pattern known as a Butterfly formation. A common retracement level for the BC leg is 38.2% of the last decline. This level is located at 1.0811. The completion of the Butterfly formation is seen at 1.0358.
The intraday chart highlights the pair moving higher within a corrective channel formation. We have a confluence zone to the upside between 1.0807 and 1.0820.
• an AB=CD formation is located at 1.0812.
• the 38.2% retracement level is located at 1.0811.
• bespoke resistance is located at 1.0807.
• trendline resistance is located at 1.0820.
Although the immediate bias is to the upside, with this strong resistance area, we would look for rallies to be limited.
Trend line support from the corrective channel formation is located at 1.0687.
DXY - we are trading within a bearish channel formation. Trend line support is located at 102.50. Trend line resistance is located at 103.66.
We will form a bullish cypher pattern known as a Butterfly formation at 102.70. Bespoke support is located at 102.70.
EUR/USD - reflecting this analysis back onto the major currency pair, and the immediate bias is mildly bullish.
The daily chart highlights a cypher pattern known as a Butterfly formation. A common retracement level for the BC leg is 38.2% of the last decline. This level is located at 1.0811. The completion of the Butterfly formation is seen at 1.0358.
The intraday chart highlights the pair moving higher within a corrective channel formation. We have a confluence zone to the upside between 1.0807 and 1.0820.
• an AB=CD formation is located at 1.0812.
• the 38.2% retracement level is located at 1.0811.
• bespoke resistance is located at 1.0807.
• trendline resistance is located at 1.0820.
Although the immediate bias is to the upside, with this strong resistance area, we would look for rallies to be limited.
Trend line support from the corrective channel formation is located at 1.0687.