EURUSD:- 1.2200 Holds The Key
EURUSD:- We are well and truly into February and the market has reacted like I thought. With the highs at the resistance zone of 1.24000, the pair has had a decline of 200 + pips visiting the 1.2200 level. This will remain a critical level for the pair as it will determine the next leg of the pair's journey. Either a break or bounce of this level will provide setups for the week ahead. A break and closure below this level would lead me to my favoured bias and support level of 1.20700. This acted as a strong resistance for the pair the last time the price was trading at this level.
With strong weekly price action suggesting a reversal and the daily moving averages coming closer to crossing back to the downside suggesting that there could be a momentum shift in the overall direction. It certainly is one to watch out for.
Without any significant Euro news this week a lot could be determined on Wednesday when the US will be releasing a large amount of fundamental data. If the Retail Sales and Core CPI came out better than expected we would likely see a continuation in the recent decline on the Euro.
Previous:- Amazing result form the pair, 1.24000 smashed and the setups provided for you! It has been a great week for the EverythingFx panel so far riding out trades to major target points in the market! What can we expect from the pair now? After breaking structure and rallying into the monthly resistance zone of 1.2400 and making a high at 1.25400 zones we have seen a swift pullback in price. These levels will be crucial for the pair as we look to head into a new month midway through next week. A lot will depend on today's candle closure, it currently is suggesting a further rejection of the upside level, leaving characteristics of a tweer top formation. This may be the reversal indication needed for the pair to form a corrective wave to the downside. having now fulfilled and achieved long-term target points I will need to wait for further confirmation and a new Month of February to come in to fruition before I make any further calls on the pair. Now that 1.2400 has been hit I would expect the bears to potentially start having a say in this market having rallied consistently for 6 weeks straight. A weekly closure back below 1.24000 would be interesting with NFP not too far away, it could be the catalyst needed to provide a well-needed rest bite for the US Dollar.