EUR/USD TO DROP…?
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WILL THE PRICE OF EURUSD FALL THIS WEEK?
In this week’s newsletter we are going to look at EUR/USD as we finally saw some USD buyers come into the market.
This move was largely supported from the bond yields rallying. This helped a lot of the major pairs break key levels. Will we see the strength continue this week?
The strength and weakness indicators did not show too much change in the markets, but the EURO still remains fairly flat compared to the other currencies and especially the USD.
Looking to the daily timeframe we can see the market rejected the major swing level of 1.2200 showing signs of the USD buyers stepping in.
This was followed by a large bearish day for EUR/USD with the price dropping back to recent minor support of 1.2070.
If this move is going to continue, we would expect to see a break of the 1.2070 level with the targets being the major support of 1.1946.
Looking at the 4hr timeframe we can see a minor resistance level of 1.2100 could be an ideal place to see sellers re-enter the market.
If the market was to trade above this level, we would likely see a rebound back towards the major level. This resistance and the support of 1.2070 will be key going into this trading week.
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