EURUSD: sitting on the trend line

Previous:
On Wednesday the 27th of February, trading on the euro closed down. The bulls couldn’t make it past the sell wall at 1.1403. The euro slumped to 1.1362 against the dollar. The trend line and balance line both provided support. The drop was brought about by a sharp rise in US10Y bond yields from 2.631% to 2.6987%.

EURUSD: testing the previous resistance as a support

Previous:
On Tuesday the 26th of February, trading on the EURUSD pair closed up. The British pound had a positive influence on the majors during the European session.

The EUR/USD pair keeps trading in a horizontal area located between the levels of 1.1316 - 1.1371 after a three wave bounce from the swing low at the level of 1.1234. The level os 1.1371 is so far too strong for the bulls to break through it, so plenty of candles with long upper shadows are now being made. This indicates, that the bears are active at this level and are trying to push the prices lower. Any violation of the lower boundary of the consolidation zone located at the level of 1.1316 will only make the down move faster.

EURUSD: pair expected to continue consolidating within the downwards channel

Previous:
On Friday the 22nd of February, trading on the single currency against the US dollar showed mixed dynamics. By the end of the European session, the pair had recovered to 1.1356. In the US session, the pair slumped to 1.1317.

Gold price is trading around $1,330 holding short-term important area of $1,326-30 once resistance now support. Price pulled back for a back test of the break out area and it seems that it was successful as price trades above it.

The EUR/USD bulls have managed to push the prices towards the level of 1.1371 which is 3 pips below the 50% Fibonacci of the previous swing down. The corrective move upwards might have been completed as the market is now in a typical zone for the correction and the Bearish Engulfing candlestick pattern has been done. This indicates the bears are defending the 50% Fibo and will try to push the prices back down again. The nearest support is seen at the level of 1.1321 and 1.1309.

EURUSD: new upwards channel forming

On Tuesday the 19th of February, trading on the EURUSD pair started from 1.1310. It dropped to 1.1275 by midday before undergoing a sharp upwards reversal to reach our target of 1.1341. It then pressed on to hit 1.1355 before retreating to close the day below the newly broken resistance. The level to which the pair corrected (1.1341) is, first of all, the intraday high from the 13th of February, and secondly, it coincides with the 38.2% Fibonacci level of the decline from 1.1514 to 1.1233.