With the EUR looking ready to melt, we have however seen a spike to the upside, with BREXIT volatility as well as we saw the USD tumble across the board due to the FOMC statement and the Fed leaving the rates unchanged which should remain the same for the rest of 2019. Subsequently this led to equities rising as the USD weakened. Today, we will see the EU Economic Summit where we will find out whether or not PM May & the UK will be granted their request on an extension on Article 50. Friday, we see data releases from the French & German Manufacturing and Services PMI.
Back to technicals and we can see that we have a 2nd touch off the outer trend line and we currently sit just below the 78.6% Fibonacci level . We were able to break the monthly key of 1.13000 with a lot of bullish momentum and we are approaching the weekly key of 1.15250. However, with that being said we can see strong resistance and wick rejections within the 1.14500-1.15000 price region and I anticipate the Euro to fall from this position. We can see selling pressure and liquidity being built up in this area which could potentially give us an opportunity to go short and see the weekly key of 1.11000 being met and even 1.09750 price regions being met. We were in a descending channel creating lower highs and lower lows with a new higher high being formed as we speak. This may be a trap to entice buyers however I see far more downside potential as we can anticipate the dollar to recover after FOMC dovish comments.
If we are able to breach the weekly key of 1.15250 with no signs of rejection or bearish candle stick patterns, this analysis will be invalid. We can also see a "W" pattern being formed which could potentially bring this pair tumbling down so keep this pair on your watchlist. I'll be back with more articles later today, so be sure to follow and if you have any questions, head over to my instagram.
Instagram : keownarcher
Back to technicals and we can see that we have a 2nd touch off the outer trend line and we currently sit just below the 78.6% Fibonacci level . We were able to break the monthly key of 1.13000 with a lot of bullish momentum and we are approaching the weekly key of 1.15250. However, with that being said we can see strong resistance and wick rejections within the 1.14500-1.15000 price region and I anticipate the Euro to fall from this position. We can see selling pressure and liquidity being built up in this area which could potentially give us an opportunity to go short and see the weekly key of 1.11000 being met and even 1.09750 price regions being met. We were in a descending channel creating lower highs and lower lows with a new higher high being formed as we speak. This may be a trap to entice buyers however I see far more downside potential as we can anticipate the dollar to recover after FOMC dovish comments.
If we are able to breach the weekly key of 1.15250 with no signs of rejection or bearish candle stick patterns, this analysis will be invalid. We can also see a "W" pattern being formed which could potentially bring this pair tumbling down so keep this pair on your watchlist. I'll be back with more articles later today, so be sure to follow and if you have any questions, head over to my instagram.
Instagram : keownarcher