EURUSD continues to fall and this time it is testing one of the key support levels at 1.07130. The currency pair is in a range, within which it has a fairly predictable target.
Today, traders will get an update on the Fed's latest efforts to lower inflation in the format of one of the key PCE indices. Expectations from the news are uncategorical and unpredictable.
From the technical analysis point of view, the price forms a rebound from the support at 1.07129 and headed towards the local resistance at 1.07624 . If we pay attention to the whole drop after the triple verishna formation, but we see that the price has not updated the local highs once, which indicates a strong bearish pressure on the market.
In the U.S., the core PCE index, the Fed's preferred measure of inflation, will be released. April PCE inflation is expected to be unchanged month-over-month at 0.3%. Analysts are eyeballing a 4.6% year-over-year increase, while the Fed is looking to bring that figure below its target of 2%.
U.S. Core Durable Goods Orders MoM - Analysts expect the index to decline, which could have a negative impact on the dollar The Core Personal Consumption Expenditure (PCE) - It is a key way to measure changes in purchasing trends and inflation - analysts believe the index will remain unchanged
The daily candlestick on Thursday closes very close to support, which can be interpreted as a willingness of the market to continue. But because of the news, we have to distinguish two scenarios regarding trigger points: A bullish momentum to 1.08453 could be formed if resistance at 1.07624 is broken. If the support is broken, we will see a strong drop to the lower boundary of the mentioned range at 1.05500
I agree with you and the EURUSD closed on Thursday just above the support you mentioned in your analysis. The support at 1.07130 fits exactly with 23.6fib level of Monthly chart. Going to lower time frame we can see that the support has been respected with the daily candle on Thursday closing above the support. Moreover we can see exhaustion daily candle getting formed on Friday right above the support all this adds confluence to the bullish momentum incase the support keeps holding.
JoeChampion
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I agree on USD strength, thanks!
Setupsfx_
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Amazing work Linda
Gold-Tech
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Wow, this is interesting. Your idea is mostly correct
FirstNameHelen
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I see a strong move coming yes, thanks for euro signal
WalterMoon
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Cool EURUSD idea buddy
basictradingtv
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love your work Linda!
FOREXN1
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Go for Short :) Thanks to share.
thunderpips
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Yeah. Potential more downside is possible. Thanks.
sallymueke
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your dreams idea is most probable to work. let's wait and see