Hello Traders and welcome to the EUR/USD (Fiber) topic where the BabyPips community can discuss and share their perspectives on the most popular currency pair in the Forex world.
Reason for Creating this Topic
Having been lurking around the BabyPips Community Forum for a considerable amount of time, I noticed that there is no unified topic for the subject currency and conversations are all over the place.
Purpose of Topic
Discussions about the Currency Pair in General
Sharing of Fundamental Analysis (e.g. High Impact News)
Sharing of Technical Analysis (e.g. Chart Patterns)
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Risk Disclosure Statement
Fundamental and Technical Analyses are for information purpose only. These are neither predictions nor investment advice. All traders are responsible for their own losses incurred and should consult their personal investment advisors before acting based on any information posted in this topic.
Market has been trading in what appears to be a giant flag pattern extended from the 10 Jun 2020 high of 1.14226, connecting the 23 Jun 2020 high of 1.13488 to form a downward trend line which also coincides as the previous week high.
Recent Price Action indicates a sideway fashion which does not provide any clues to whether market sentiment is bullish or bearish.
The downward trend line which coincides with the 1.13 round figure could serve as a potential turning point where sellers could be lurking and emerge to push price lower.
If price bounces off the downward trend line, there is a possibility for sellers to target the monthly open near 1.12340.
If you have been reading and following my technical analysis, you should be able to recall the following:
Market appears to have bounced off the round figure of 1.13 where sellers took control and pushed price lower, targeting the next area of interest near the Monthly Open of 1.12340 where potential buyers were lurking to put a stop to the sellers’ bear run.
As at this juncture, both buyers and sellers appear to be at an equilibrium without any clear indication of where the market will be heading next.
Areas for Consideration
If market sentiment turns bearish, there is a possibility for price to break below the round figure of 1.12 and target the next area of interest near the Previous Week Low of 1.11680.
Market appears to have staged a bullish rally towards the direction of the Downward Trend Line extended from the 10 Jun 2020 high near 1.14226 where potential sellers could be lurking and ready to push price lower.
If price bounces off the Downward Trend Line, there is a possibility for the market to continue its sideway movements with the next area of interest being the Monthly Open (Jul 2020) near 1.12340 or the Round Figure near 1.12000.
Market appears to have staged a bull rally and broke past the Downward Trend Line extended from the 10 Jun 2020 high near 1.14226 but was met with a Quasimodo Resistance near 1.1348.
With price breaking above the Downward Trend Line, it is not yet a confirmation of a trend reversal towards the upside until the round figure of 1.14000 has been broken and re-tested with a bullish reversal pattern.
If market continues to trade in a range, there is a possibility for potential sellers lurking around the Quasimodo Resistance near 1.1348 to push prices lower and target the Previous Week High near 1.13030 where potential buyers could step in and hold the fort around the round figure of 1.13000.
Market appears to have bounced off the Quasimodo Resistance near 1.13480 and potential buyers lurking near the 1.13000 Round Figure support zone were unable to hold the fort.
In this scenario, the shared currency pair has pretty much retreated back to the month-long range without any clear indication of which direction it intends to go.
Areas for Consideration
The 1.13000 Round Figure Support-turn-Resistance could see potential sellers lurking around to hold the fort and push price lower.
If potential sellers are indeed lurking around the 1.13000 Round Figure, managed to hold the fort, and push the price lower, there is a possibility that price could trade lower towards the next area of interest which is the July 2020 Monthly Open near 1.12340.
Price appears to have bounced off the Downward Trend Line extended from the 10 Jun 2020 high near 1.14226, broke past the 1.13000 Round Figure, and met-up with the Quasimodo Resistance near 1.13480.
Market could consolidate while waiting for the German Balance of Trade data which takes place an hour prior to the European session with a forecast expecting better results as compared to the previous.
If market sentiment is bullish, there is a possibility for price to break above the Quasimodo Resistance and target the next area of interest which is the 1.14000 Round Figure.
However, if the economic data falls short of the forecasted expectations, there is a possibility for price to retreat and target the 1.13000 Round Figure which coincides with the Previous Week High.
Market failed to break above the Quasimodo Resistance near 1.1350 with a rejection and traded lower towards the downside past the 1.1300 Round Figure without facing any resistance from buyers.
If market sentiment has turned bearish for the longer term, there is a possibility for price to retrace and bounce off the 1.1300 Round Figure which coincides with the Previous Week High (Support-Turned-Resistance) before a continuation towards the downside, targeting the next Area of Interest which is the Monthly Open near 1.1234.
