EUR/USD Black Widow Shows Potential Up Move Continuation

EUR/USD Key Trends

Main Trend: Bearish
Mid Trend: Bullish

Interim Trend: Bearish

M15 EUR/USD Chart

1. The first entry zone
2. Trend line rejection and the possible scale-in entry
3. 3 trends are aligned as bullish
4. The target

EUR/USD has formed a bullish structure that might be rejecting the trend line as the new entry forms. 1.0470 is the first entry ans we might be seeing another one soon.

Fundamentals

Fundamentally, things are not looking very bright in the eurozone. Russia decided to cut the flow of natural gas to some European countries like France and Italy. Additionally, Germany is making preventive measures to deal with a potential supply cut.

I reckon the days of cheap fuel are gone in the West. Maybe in countries aligned to Russia and OPEC it will be okay for prices. We are net consumers of oil/fuel, and we have closed many refineries. It seems the West has picked its side against Russia, and the US and Allies don’t have a good reputation in Venezuela and Iran. Plus the Saudis are cunning, they will do Oil contracts in Yuan.

Technical Analysis

Technically we should see the bounce. The Black Widow shows an intraday range plus the clear entries. If we manage to get another entry soon, momentum will rise and trend should continue. In the case of rising EUR/USD price for today, I advise scaling out at important levels or booking full profits.

Don’t forget we will have Lagarde speaking and June PMI which could sharply drop the EUR/USD again. There is still ongoing war in Ukraine and above mentioned problems with Russian supply of gas. This could all reflect on the price of EUR/USD. Germany’s Ifo business climate index will follow on Friday so this trade should have already been closed by that.

However the intraday technicals are bullish and that’s where our trades come from.

For a look at all of today’s economic events, check out our economic calendar.

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Cheers and safe trading,

Nenad