Hello everyone, as we all know the market action discounts everything :)
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The EUR/USD managed to reverse directions before falling to new 2021 lows, although this appears to be a technical correction rather than a fundamentally-driven recovery.
The last push was able to reach the $1.1689 that's when the Sellers were able to pup that bullish bubble and drive the price down in a signal day to $1.1538 a 1.2% decrease.
Possible Scenario for the market :
Scenario 1 :
The Pair looks like it's going to the first support line located at $1.14990 where a battle between the Sellers and Buyers will happen where the winner will determine the outcome movement for the market, If the Buyers were able to win then we could be seeing a correction wave that will reach the first resistance line located at $1.16570 level.
Scenario 2 :
The Sellers will try to keep pressure over the market and by breaking the first support line at $1.14990 a further drop will happen that will reach 1.13410 in the near future
Technical Indicators show :
1) The market is below the 5 10 20 50 100 and 200 MA and EMA (Strong Bearish sign)
2) The RSI is at 45.90 on the lower edge of the middle zone showing weakness in the market.
3) The STOCH is in the lower end with a positive crossover between %K and %D.
Daily Support & Resistance points :
support Resistance
1) 1.1564 1) 1.1629
2) 1.1522 2) 1.1652
3) 1.1499 3) 1.1693
Weekly Support & Resistance points :
support Resistance
1) 1.1499 1) 1.1657
2) 1.1438 2) 1.1754
3) 1.1341 3) 1.1816
Fundamental point of view :
Currently, the pair is holding steady around 1.15900 as the greenback remains on the back foot. On Monday, the S&P 500 and the Dow Jones Industrial indexes both notched new all-time highs and the risk-positive market environment made it difficult for the dollar to preserve its strength. In the meantime, investors seem to have removed the flattening of the US bond yield curve to the background with the short-term yields staying relatively quiet ahead of the Federal Reserve's all-important policy announcements.
On the flip side, the 10-year German bond yield remains in the negative territory, forcing euro bulls to stay in a wait-and-see mode.
IHS Markit's final revisions to October Manufacturing PMIs for the euro area and Germany are unlikely to trigger a significant market reaction. Later in the day, the IBD/TIPP Economic Optimism Index will be the only data featured in the US economic docket.
Until the Fed event on Wednesday, EUR/USD is likely to continue to fluctuate between technical levels. According to Fxstreet
This is my personal opinion done with technical analysis of the market price and research online from Fundamental Analysts and News for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading.
_________________________________Make sure to Like and Follow if you like the idea_________________________________
The EUR/USD managed to reverse directions before falling to new 2021 lows, although this appears to be a technical correction rather than a fundamentally-driven recovery.
The last push was able to reach the $1.1689 that's when the Sellers were able to pup that bullish bubble and drive the price down in a signal day to $1.1538 a 1.2% decrease.
Possible Scenario for the market :
Scenario 1 :
The Pair looks like it's going to the first support line located at $1.14990 where a battle between the Sellers and Buyers will happen where the winner will determine the outcome movement for the market, If the Buyers were able to win then we could be seeing a correction wave that will reach the first resistance line located at $1.16570 level.
Scenario 2 :
The Sellers will try to keep pressure over the market and by breaking the first support line at $1.14990 a further drop will happen that will reach 1.13410 in the near future
Technical Indicators show :
1) The market is below the 5 10 20 50 100 and 200 MA and EMA (Strong Bearish sign)
2) The RSI is at 45.90 on the lower edge of the middle zone showing weakness in the market.
3) The STOCH is in the lower end with a positive crossover between %K and %D.
Daily Support & Resistance points :
support Resistance
1) 1.1564 1) 1.1629
2) 1.1522 2) 1.1652
3) 1.1499 3) 1.1693
Weekly Support & Resistance points :
support Resistance
1) 1.1499 1) 1.1657
2) 1.1438 2) 1.1754
3) 1.1341 3) 1.1816
Fundamental point of view :
Currently, the pair is holding steady around 1.15900 as the greenback remains on the back foot. On Monday, the S&P 500 and the Dow Jones Industrial indexes both notched new all-time highs and the risk-positive market environment made it difficult for the dollar to preserve its strength. In the meantime, investors seem to have removed the flattening of the US bond yield curve to the background with the short-term yields staying relatively quiet ahead of the Federal Reserve's all-important policy announcements.
On the flip side, the 10-year German bond yield remains in the negative territory, forcing euro bulls to stay in a wait-and-see mode.
IHS Markit's final revisions to October Manufacturing PMIs for the euro area and Germany are unlikely to trigger a significant market reaction. Later in the day, the IBD/TIPP Economic Optimism Index will be the only data featured in the US economic docket.
Until the Fed event on Wednesday, EUR/USD is likely to continue to fluctuate between technical levels. According to Fxstreet
This is my personal opinion done with technical analysis of the market price and research online from Fundamental Analysts and News for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading.