Market Focus: EURUSD
Has the EURUSD found a roof?
Hi traders, so looking at the daily EURUSD it’s not too hard to see the new level of resistance that has basically confirmed now. 1.1937, for now, remains as key resistance stopping two rallies in the last two weeks.
Price has started to form a range with the base support seen at the 1.1782 area. After a run, we have seen it’s not strange to see price start forming a consolidation pattern. The question will be is this a consolidation or distribution? I’m interested to see what happens if sellers get back down to the range base qualifying the fourth point in the zigzag. Ahold and push back to the top continues to maintain the range but a break could be a shift in dynamic.
Another thing to look out for is a new lower high below or at resistance, you will notice that there will be shift from HH to LH, if we see a new LL after that we could have signs of a change of medium-term momentum. A larger shift will need support from the USD. So, for now, we’re watching the current short-term selling and how things react once/if price gets back to the range base.
Key news to come today:
10:15 pm AEST US ADP Non-Farm Employment Change. Don’t forget we have US employment data coming out this Friday at 10:30 pm AEST.