The H&S pattern on H4/daily chart was validated. See what is going to happen next here.
Hi all! The UK has officially exited the EU. That made both gbpusd and eurusd spike. My projection for 3-7 February is as follows.
The EURUSD finds a resistance around the 1.1100 level and the 55 day EMA from where it bounces to the downside. The 1.1000 level could act again as support, but a breakdown of that level could take the pair to the 1.0900 level.
The EURUSD has formed a bullish flag on the daily chart with the 1.1200 level acting as support and to the upside, the 1.1400 level may act as resistance, but the pair has to break above the 1.1400 level to confirm the bullish flag.
Technical Analysis | H4 Timeframe
Market appears to be trading in a range between the round figures of 1.12 - 1.13.
Price broke below the upward trend line drawn from the 1.08 zone and appears to be held up by the round figure of 1.12 acting as support.
If market sentiment continues to be Bearish, there is a possibility for price to break below the support zone near round figure 1.12 and target the previous week low near 1.11680 (Red) or the 200-SMA (Purple).
Techical Analysis | H4 Timeframe
Market appears to continue trade in a range between the round figures of 1.12 - 1.13.
Price bounced off the round figure near 1.12 and rallied higher past the resistance zone near 1.1258.
If market sentiment is neither bullish nor bearish but stuck in a limbo of indecision, there is a possibility for the sideway fashion to continue until price breaks out towards either the upside or downside of the range.
