Saturday, November 12, 2016

EUR/USD Could Not Break below the 1.0830 – 1.0850 Zone and It Looks It Will Rebound from It

That is especially noticeable on the one-hour time frame, where there are several bullish bars, as well as a RSI divergence with a limit around 1.0890 or 1.0900.

However, that is not that much of a move to the upside and if said divergence does not deepen in the beginning of next week there could be a breakout below that strong support zone (between 1.0930 and 1.0850) and then the pair could continue falling towards 1.0650 – 1.0600 or even towards 1.0550, as it has been expected to for quite a while now.

All this could be a little surprising to happen given the news coming from overseas that could weaken the dollar, more or less. Still, if the pair does drop, that would be yet another proof that the markets follow their own direction, regardless of any political or economic news that can be the catalyst of significant, but short-term movements.