The support zone marked by the Bollinger Bands indicator proved to be too strong for EUR/USD and the pair has been consolidating between 1.0630 and 1.0340 for four weeks now. During that consolidation four doji bars have formed on the weekly time frame. Although the fourth bar hasn’t closed yet, I think it will be a doji too, because there’s very little time left until the market closes.
The NFP announcement earlier today barely had any effect on the pair – it moved to the upside with about 75 pips within the range and then dropped sharply, again within the range.
We should not exclude to possibility that EUR/USD could move to the upside towards the resistance at 1.0950 but even if that were to happen, I still think that the pair could continue dropping towards parity.
In my opinion it is a matter of when it will happen, not whether it will happen.
Too volatile, but with no clear trend.
ReplyDeleteIt will likely reach 1.0400 again next week.
ReplyDeleteHelpful info!
ReplyDeleteGreat analysis as always!
ReplyDeleteSeems like its getting ready to push higher.
ReplyDelete