EURUSD has been in a strong uptrend after the Covid crash of March 2020. However, the price action has been corrective in the past few months, and it's logical for it to be so because we're approaching a very significant resistance level which is the 2018 high.
Also, the speculations over the Fed's intentions for tapering have been an important factor which halted the bullish trend for the last few months.
Over the last week, USD had some good economic data coming out and also on the technical side of things, there is a small bearish flag forming on the chart and we may see an ((impulse-correction-impulse)) pattern for another bearish leg, especially after the fake breakout of the top of the descending channel.
However, I think it will only be a short term move and if the price finds the bottom at the area I've shown on the chart, I'll definitely be looking for a mid term bullish leg.
The first two targets are the last two major highs that are shown on the chart. The final target could be the 2018 highs, which I think we'll see by the end of 2021. It just lines up perfectly with the Fed's announcement that they may start rate hikes next year and we could witness another major top on the 2018 highs before a bearish reversal.
I hope the chart is also clear. Thanks for your attention ;)
Also, the speculations over the Fed's intentions for tapering have been an important factor which halted the bullish trend for the last few months.
Over the last week, USD had some good economic data coming out and also on the technical side of things, there is a small bearish flag forming on the chart and we may see an ((impulse-correction-impulse)) pattern for another bearish leg, especially after the fake breakout of the top of the descending channel.
However, I think it will only be a short term move and if the price finds the bottom at the area I've shown on the chart, I'll definitely be looking for a mid term bullish leg.
The first two targets are the last two major highs that are shown on the chart. The final target could be the 2018 highs, which I think we'll see by the end of 2021. It just lines up perfectly with the Fed's announcement that they may start rate hikes next year and we could witness another major top on the 2018 highs before a bearish reversal.
I hope the chart is also clear. Thanks for your attention ;)