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EUR/USD Daily Price Forecast – EURUSD Continues to Trade Strongly

By:
Colin First
Published: Oct 3, 2018, 04:41 UTC

The pair has bounced off the support in the 1.15 region and it looks as though the bulls are trying to make a statement

EURUSD Wednesday

The EURUSD pair has bounced off the support in the 1.15 region as was widely expected and now trades just below the 1.16 region as of this writing. We have been saying many times over the last couple of days that there is a large head and shoulders formation that is being built in the pair over the last few days with the head of that formation (reverse formation) being in the lows of August 15. We are also seeing signs of tiredness among the dollar bulls as well.

EURUSD Bounces

This is due to the fact that most of the developments associated with the US economy and the Fed is already priced into the markets and the Fed has been diligent enough to signal its intentions to the market several months back. So, what we have been seeing over the last few months are just the notes being set into actions and the market has always been quick enough not to wait for the action but to start doing its thing right when the notes are set. This is the reason why the moves from the dollar have been slowing down and even the impact of the last rate hike from the Fed has been pretty negligible.

Keeping all this in mind, we believe that fundamentally and technically, the pair is looking to move higher in the days to come and the more that the bulls make their stand around the 1.15 region, the more it becomes clear to the market that the prices are only going to move higher and this is going to draw in more and more traders to start buying as well, triggering a lot of momentum for the bullish leg that is likely to follow. For all this to happen, the region around 1.15 is likely to be the key and this would be the region of battle for the bulls and the bears for control of this pair and there is likely to be a lot of stops below this. Any break below this region would trigger these stops and would accelerate the move lower and then the bears would be in control.

About the Author

Colin specializes in developing trading strategies and analyze financial instruments both technically and fundamentally. Colin holds a Bachelor of Engineering From Milwaukee University.

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