EUR/USD Decides Direction!
EUR/USD continues to be undecided in the short-term. Maybe the traders are waiting for the Euro-zone and the US manufacturing and services data before taking action. The price is traded near a critical resistance zone, so anything could happen in the coming hours.
The economic figures are expected to drop, so it remains to see how the pair will react. EUR/USD could drop again if the USDX jumps higher and it could rally if the index drops. You should be careful as the eurozone services numbers could signal that the sector is into recession again due to the new COVID-19 lockdowns.
EUR/USD At Resistance!
I’ve told you in the last week that EUR/USD should resume its upside journey if it jumps and closes above the 1.19 psychological level. Is trapped under the median line (ml) of the ascending pitchfork and below the R1 (1.1894) level, the pressure is high around these levels.
Technically, a valid breakout through these obstacles followed by stabilization above the 1.19 suggests buying with a potential upside target at the upper median line (uml). Still, the greenback could take the lead again if the US data beats expectations, so a false upside breakout with huge separation or a major bearish engulfing could represent a short signal.
- EUR/USD Trading Tips
Buy a bullish closure above the 1.1920 former high having a first upside target at the 1.2 psychological level. The upper median line (uml) could attract the rate as well if EUR/USD takes out the immediate resistance levels.
Sell a pin bar (shooting star), a bearish engulfing, or any other reversal pattern printed in the resistance area.
The material has been provided by InstaForex Company – www.instaforex.com