EurUsd: Short-Term Eur strength & Pullback possible
Hello Traders.. Another week and more price action to anticipate in the Forex market. EurUsd: As we enter the 4th week of April our Monthly candle is still bearish with a solid bearish body. Last week we came very close to a Monthly support level at 1.057. The low of the week was on Tuesday and coincided with a Hawkish Fed speech. The weekly candle closed bullish and we now have a weekly support level at 1.0649. The weekly candle closed a small body doji - looking candle with a larger top wick. The new week gapped up 5 pips. The daily candle's price action from last week looks quite subdued. Looking for buys on EurUsd still apears risky to me as we still have hot jobs data and rising inflation. We had hawkish fed speech last week which means higher potential rates for the USD. This means USD could be increasingly used in the Carry trade, an even better reason to look for USD strength. Not much has changed and yes we can observe a pullback , with Eur Strength. Overall bearish on EurUsd but trading a pullback to the upside is definitely possible. We'll have to see how EurUsd reacts with the Daily resistance level 1.06726. The USD Index ended last week pulling back from a Daily Resistance level.. and we've done exactly that after 8 hours at the beginning of this new week. This could indicate Eur strength in the coming 2 sessions. Although I'm anticpating a higher Vix and lower Oil prices. It may be too early in the week for a Lower EurUsd.. we may observe short term Eur strength as a result.
Comment:
I mentioned that EurUsd was testing a Daily resistance Level 1.06726. Since then, price has been pulling downwards during London session. When New York session opened 1.5 hours ago, price ppulled back up for a retest of the 1.06429 Daily Level before continuing the selloff with the new 4hr candle that just opened 22 minutes ago. 4Hr Chart EurUsd : We can see that the 4hr just closed a solid bearish candle.. and we now have (2) bearish 4hr candles rejecting the Daily resistance level 1.06726. This new 4hr candle acted as a catalyst to continue the bearish momentum that we could observe from London session. We just filled the previous 4hr candle bottom wick, (9 pips) and may continue towards 1.06184 Daily support level.. this is our next key area on EurUsd.
Comment:
5 minute chart : Explained in this chart is how 1Hr candle closes, and new 4hr candle's provide more confirmation and confidence when executing trades
