EURUSD entered a confirmed uptrend scenario on Nov 4, 2022, rising from 0.9800 to 1.0900 on Jan 23, 2023, corresponding with a 1,100 pip increase within 12 weeks (4hour chart)
The EURUSD price now resembles a tightly stretched rubber band that could snap back in the opposite direction at any moment.
Currently, the price remained within his long-term uptrend channel (1-4h chart).
The support was tested three times:
a) on November 21, 2022
b) on November 29, 2022
c) on January 3, 2023 - remaining below until January 9, reentered uptrend without short confirmation.
Two scenarios are conceivable at present:
1. EURUSD continues its uptrend until 1.1000 is tested.
2. EURUSD breaks below MA200 (1hour chart) and confirmes a downtrend entry below 1.0830
Relevant US and Eurozone Economic News readings of this week are supposed to be key:
Wednesday, Jan 25, 2023: Crude Oil Inventory;
Thursday, Jan 26, 2023: GDP, Initial Jobless Claims, Durable Goods Orders, New Home Sales
Friday, Jan 27, 2023: Pending Home Sales, Core PCE Price Index
Relevant EURO News on Friday: ECB President Lagarde Speaks
High volatility episodes after news release are expected.
Avoid opening new positions at the time of the news release or shortly before
More about the triggering effects of economic news and the psychology behind it in my upcoming weekend post.
The EURUSD price now resembles a tightly stretched rubber band that could snap back in the opposite direction at any moment.
Currently, the price remained within his long-term uptrend channel (1-4h chart).
The support was tested three times:
a) on November 21, 2022
b) on November 29, 2022
c) on January 3, 2023 - remaining below until January 9, reentered uptrend without short confirmation.
Two scenarios are conceivable at present:
1. EURUSD continues its uptrend until 1.1000 is tested.
2. EURUSD breaks below MA200 (1hour chart) and confirmes a downtrend entry below 1.0830
Relevant US and Eurozone Economic News readings of this week are supposed to be key:
Wednesday, Jan 25, 2023: Crude Oil Inventory;
Thursday, Jan 26, 2023: GDP, Initial Jobless Claims, Durable Goods Orders, New Home Sales
Friday, Jan 27, 2023: Pending Home Sales, Core PCE Price Index
Relevant EURO News on Friday: ECB President Lagarde Speaks
High volatility episodes after news release are expected.
Avoid opening new positions at the time of the news release or shortly before
More about the triggering effects of economic news and the psychology behind it in my upcoming weekend post.