Friday, July 14, 2017
EUR/USD Is At A Crossroads
EUR/USD is at a major crossroads today and obviously neither traders nor investors can pick a direction yet.
On the monthly time frame the pair is at a very strong resistance level, but that doesn’t mean that the pair cannot form a new high before it begins a correction. Also, on the W1 and D1 time frames there is clearly still room for a rally.
The H1 chart is interesting, as one can draw several trend lines on it.
Obviously the pair is trying very hard to break out above the resistance trend line of the red trend channel and has formed a pair of false breakouts, after which it has returned within the channel.
Still, if it does succeed in breaking out above that trend line we could see a rally to 1.1500 - 1.1520.
If it fails to break out above the trend line I think we will witness a deeper correction to the downside toward the zone around 1.1370 – 1.1350.