EUR/USD: Has the market finally determined a direction for this pair?
A range-bound market is one that no trader wants and for a while that is what EURUSD was like, from May until June that is pretty much what the pair was like, until… July rolled around. A more than expected Dovish FED Powell at his testimony yesterday put the dollar bears in the spotlight and back in control, Powell highlighted a bigger global slowdown and referencing the word “Uncertainty” a mere 24 times.
We know the pair bottomed out at the low 1.11s and has subsequently reached a high at 1.14 a couple of weeks ago. Currently trading at 1.1270 and showing signs of a renewed uptrend on its way. Technically the pair is in a well-defined uptrend already, from the low at 1.1125 to a high of 1.14, the new low swing area formed yesterday at 1.1195 the new swing high may look to come in at 1.1450/1.15 perhaps?
The 4-hour chart below highlights the swing areas nicely, a simple trend line connecting the lows gave us a perfect entry at 1.12 to take higher, targeting 1.14/1.15 in the coming weeks (In my opinion)