EURUSD falling below its trend line and making a sharp correction this week. This might indicate a trend reversal and further downside momentum.
As well as gold, other assets connected to USD have also taken a hit. Following Friday's speech, EURUSD has seen a turn in direction. It pulled back from its highs around 1.1, now trading back around 1.079 and targeting 1.075, which is a previous resistance it broke last month. Bears are hoping that this is a confirmation of a new bullish trend reversal, but fundamentally and technically, there is little evidence for that. The price did break a minor bullish trendline, but the major bullish trend line is still in play- around 1.07. We also have a 0.5 fibonacci retracement level right around 1.076.
The main focus now is the 1.076/1.075 level. If the price holds above this level, that is a great entry for buys and confirming a new higher low and a bullish continuation is expected. On the other side, if we fall below this level, the next support is around 1.07- right on the major trend line. As it stands, we are looking for buy opportunities.
As well as gold, other assets connected to USD have also taken a hit. Following Friday's speech, EURUSD has seen a turn in direction. It pulled back from its highs around 1.1, now trading back around 1.079 and targeting 1.075, which is a previous resistance it broke last month. Bears are hoping that this is a confirmation of a new bullish trend reversal, but fundamentally and technically, there is little evidence for that. The price did break a minor bullish trendline, but the major bullish trend line is still in play- around 1.07. We also have a 0.5 fibonacci retracement level right around 1.076.
The main focus now is the 1.076/1.075 level. If the price holds above this level, that is a great entry for buys and confirming a new higher low and a bullish continuation is expected. On the other side, if we fall below this level, the next support is around 1.07- right on the major trend line. As it stands, we are looking for buy opportunities.