Recap: The price has broken the 1.22500 level on Monday after being held back on the previous Friday. Price has printed a strong bearish candlestick that close below the 1.22500 level and near the close. On Tuesday, the price has pullback to retest the 1.22500 level but has failed to break above. The price continued its bearish movement on Wednesday towards the psychological mark 1.21500. At that level, price has undergo an pullback to 1.2200 level before the bears strongly push the price to breakthrough the 1.21500 psychological level and move towards the 1.21000 psychological level. On Friday, the price has briefly move below the 1.21000 level before a pullback started and moves it upwards towards the 1.21500 level.
Technical: The price has printed a hammer formation after breaking the 1.21000 level and bounce back upwards. Could be a possible short term reversal formation if the next candlestick could close above the 1.21500 level. A close above 1.21500 level would prompt the price to target the next resistance at 1.22500. Consecutively, a push above 1.22500 would target the next psychological level at 1.23000 and above. On the Downside, if price break failed to breakout of 1.21500, the price would potential bounce downwards to retest the 1.20000. If price did break below 1.20000, the immediate target is 1.19250 and subsequently 1.18500.
Fundamental: Although the technical sides has indicated that a potential reversal is in sight, the market is still mostly undecided due to mixed signal. With ECB's president Mario Draghi hints that ECB might not be raising rates anytime soon, the market has triggered a selloff and has started to show sign of bearishness. Coupled with strengthened USD and positive US news, the euro has been dealing with a string of strong selling pressure, causing the price to breakout of its previous swing low at 1.21500 and briefly shot downwards to 1.20500 before rebounded to above 1.21000.
Verdict: More confirmation is needed. A more detailed analysis on smaller TF is needed to identify setup.
Technical: The price has printed a hammer formation after breaking the 1.21000 level and bounce back upwards. Could be a possible short term reversal formation if the next candlestick could close above the 1.21500 level. A close above 1.21500 level would prompt the price to target the next resistance at 1.22500. Consecutively, a push above 1.22500 would target the next psychological level at 1.23000 and above. On the Downside, if price break failed to breakout of 1.21500, the price would potential bounce downwards to retest the 1.20000. If price did break below 1.20000, the immediate target is 1.19250 and subsequently 1.18500.
Fundamental: Although the technical sides has indicated that a potential reversal is in sight, the market is still mostly undecided due to mixed signal. With ECB's president Mario Draghi hints that ECB might not be raising rates anytime soon, the market has triggered a selloff and has started to show sign of bearishness. Coupled with strengthened USD and positive US news, the euro has been dealing with a string of strong selling pressure, causing the price to breakout of its previous swing low at 1.21500 and briefly shot downwards to 1.20500 before rebounded to above 1.21000.
Verdict: More confirmation is needed. A more detailed analysis on smaller TF is needed to identify setup.
