EUR/USD: Pair Has Entered A Correctional Phase


Trading on the Euro closed down on Thursday, with a breakout of the trend line ending the 4-day rally. The pair fell to 1.1076 but sellers weren’t able to close the day below 1.1082 (the opening price of the candlestick on the 17th of May).

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Market expectations:

In Asia, the Euro is trading at 1.112. Friday’s economic calendar is relatively empty but there are some planned speeches from members of the ECB and the US Federal Reserve. Euro-bears have consolidated under the balance line, so I’m going to take a risk and say that the correctional movement will continue to 1.1060.

Day’s news (GMT+3):

  • 09:00 Germany: PPI (Apr);
  • 11:00 Eurozone: current account (Mar);
  • 12:00 Eurozone: ECB member Prat’s speech;
  • 13:00 UK: CBI industrial trends survey – orders (May);
  • 15:00 Eurozone: ECB member Constâncio’s speech;
  • 15:30 Canada: CPI (Apr), retail sales (Mar), CPI core (Apr);
  • 16:15 USA: FOMC member Bullard’s speech;
  • 17:00 Eurozone: consumer confidence (May);
  • 20:00 USA: Baker Hughes US oil rig count.

  • EURUSD rate on the hourly. Source: TradingView

    Intraday forecast: low: 1.1060, high: 1.1126/30, close: 1.1070.

    On Thursday, the Euro/dollar pair closed down. Sellers didn’t manage to close the day below 1.1082 and so missed out on forming a bearish engulfing pattern. The dust has finally settled after a 4-day rally. The trend line and balance line have both been broken through. The price fell as a result of a high volume of orders, indicating a mass closing of long positions that had been opened by traders from the 12th of May. In the second half of the day, gold and yen both depreciated, while US bond yields grew.

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    Author: Travis Esquivel

    Travis Esquivel is an engineer, passionate soccer player and full-time dad. He enjoys writing about innovation and technology from time to time.

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