EURUSD Technical Overview : Indecisive Markets

20 Jul 2018

Fundamentals:

Fears of currency wars may keep the Euro under pressure.
No major data scheduled to release today.
Trump’s comments about FED’s decision made a bullish effect on EURUSD. Dollar Bulls do not feel so confident.
The last day of the week. Volumes could be lower and volatility higher as usual.

Technically:

EURUSD is trading at 1.16640 as of writing.

The candlestick pattern indicates an indecisive market and the pair will likely adopt a bearish/bullish bias depending on today’s close.

On the four hours chart, the pair is testing the EMA 50 resistance. If the pair breaks above 1.16880, it is likely to test 1.17160.

This level is important as MM 4/8 Major Resistance. As seen on the harmonic chart, at the same level we have a bearish cypher harmonic pattern completion.



Conclusion:

We can not talk about a midterm trend reversal as long as the pair holds below 1.18500.
If the pair breaks above 1.16880, it is likely to test 1.17160. If it breaks above a bullish flag would be completed and next week we will likely see the pair testing 1.18000 next week.
We will look for a short opportunity at 1.17160.
If the pair fails to break above 1.16880 and breaks below 1.16400, it would be the confirmation of the bearish continuation.

20 Jul 2018

Catatan