Thursday, August 31, 2017

EUR/USD Pulled Back From The Resistance Trend Line

EUR/USD reached the resistance trend line of the channel, but could not break out above it at this stage and began depreciating. That is especially obvious on the D1 time frame.

On the same time frame we can see a RSI divergence between the last four highs, which, if it reaches its limit, could lead the pair to 1.1400, which is a little over than 38.2% of the pair’s rally from 1.04945 (26th February 2017).

The pair is in a resistance zone both on the monthly and weekly time frames. Not to mention that today is the last day of August and we will see how the monthly bar will close in a few hours, which will help us figure out whether there will be a deeper correction.

Tomorrow the US Change in Non-Farm Payrolls data will be announced, which usually causes major volatility on the market and sometimes becomes a catalyst for large movements. So if there will be a correction the news tomorrow could be the beginning of it.