The euro is falling for significant reasons – the imminent increase in the debt limit (which will lead to a massive influx of dollars from outside to purchase US government bonds) and a more hawkish stance from the Federal Reserve regarding interest rates than what the markets currently expect (yesterday, Neel Kashkari and James Bullard mentioned raising rates above 6% as inflation persists).
However, from a technical standpoint, the situation is ripe for a correction. On the daily chart, a small weak convergence between price and the Marlin oscillator is forming. The price has not reached the embedded line of the price channel (green line), creating a dual situation: either the inclined support will be tested today, or the price will go up to 1.0804 and only after that will it attack 1.0736, surpassing the price channel line. A drop below 1.0736 opens the target at 1.0625, the lower embedded line of the price channel.
On the 4-hour chart, the price is falling below both indicator lines, and the Marlin oscillator is declining in bearish territory. The resistance level at 1.0804 is reinforced by the MACD indicator line here. Yesterday’s trading volumes were at average May levels, which does not provide a basis for an immediate breakthrough of support. Perhaps a small correction will allow investors to accumulate short positions.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
If you have an interest in any area of Forex Trading, this is where you want to be.
Global Fx Trading Group is a world leader in providing Fx services, o individual traders, including: Unmatched funding programs, on-line education, virtual trading rooms, automation tools, robot building, and personal coaching.
The company was first established by Jeff Wecker, former member of the Chicago Board of Trade, with 25 years in the industry. Jeff has a keen understanding of the needs of Forex traders and those needs are our focus.
Please join our VIP Group while is still FREE …
https://t.me/joinchat/JqsXFBKpyj3YS4bLWzT_rg
Our mission is simple: To enhance as many lives as we can through education and empowerment.
#theforexarmy #forexsigns #forexsignals #forexfamily #forexgroup #forexhelp #forexcourse #forextrade #forexdaily #forexmoney #forexentourage #forextrading #forex #forexhelptrading #forexscalping #babypips #forexfactory #forexlife #forextrader #financialfreedom
