Thursday, November 24, 2016

The EUR/USD Drop Stopped at the Critical Support Zone around 1.0520 – 1.0580



At the moment the pair has stopped at the critical level of 1.0518 and is forming a rather tight range between 1.0518 and 1.0580.


It looks like the USD will remain pretty strong at least until the FED meeting when they have to decide whether they will hike the interest rate or not.

The bulls do not want to lose control over the USD and I think that it is very possible for the pair to continue forming a range around this critical zone until the news about the interest rate come out in the beginning of December.

It’s difficult to make a prognosis about what direction the pair will take after that. From a technical analysis point of view I think that the pair will continue falling and if there is an interest rate hike we will see a major drop towards parity.

If the interest rate remains as it is I think there will be a move to the upside towards 1.1000 and above.


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