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on Aug 31 I talked about the EURUSD market and how it’s moving after a Breakout in the trend, Today we see that the market moved exactly like we thought it would.
EUR/USD is trading flat in a quiet start to the week with North America out for the day on holiday. The EUR/USD pair rallied higher all of last week to reach the end of July high at 1.1909. and now trending near the resistance line at 1.19010.
Possible Scenarios for the market movement for the new period of time :
The market is nearing the between 1.1889 – 1.1892 after a great week of movement the Bulls does seem to have enough power to breakout that zone and if that happens we will be seeing the price going up near the June at 1.19312
when the market reaches the between 1.1889 – 1.1892 a battle will happen between the Bears and Bulls, IF the Bears were able to gain control back over the market then the price will drop down and it will go near the first 1.18172 where the Bulls will gather whatever power they may have to gain momentum and control the trend and push it back up.
Technical indicators show :
- The market is above the 5 10 20 50 MA and , But still below the 100 and 200 MA & ( this indicates that the short-term trend for now seems but for the long-term trend of the market is still looking ).
- The is above the 0 line showing that the market is in a state with a positive crossover between the line and the Signal line.
- The is at 60.00 showing great strength in the market with no divergences found on the yet.
Fundamental point of view :
As the market shifts its attention to the ECB meeting on Thursday, ‘buy the rumor, sell the fact’ is an apt strategy that springs to mind, according to economists at Société Générale. The EUR/USD pair should head higher towards the 1.1910 resistance on a hawkish message from the European .
However, certain members of the central banks are less dovish, including Governing Council member Francois Villeroy who said the bank should consider more favorable financing conditions in the eurozone in deciding on the pace of PEPP this week. According to Fxstreet
This is my personal opinion done with of the market price and research online from fundamental analysts for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading.