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A potential scenario for EURUSD

Monday, February 11, 2019 2:00 PM GMT

Analysts believe that the EUR has disappointed because of further putting off the ECB interest rate normalization while the US Dollar is having weakness due to expiring of FED interest rate cycle and as a result for both currencies, the outlook for 2019 does not look promising.

Reviewing the weekly technical aspect, EURUSD is currently breaking out below the trendline (T1), while CCI is giving a bearish indication, having already broken the key -100 level to the downside. Additionally, the pair is testing the support zone.


Looking at the daily timeframe, the pair bounced at the daily (S1) towards the trendline (T1). At this point, it is retracing back pushing the pair to the downside.


Overall, the trendline (T1) is a major technical level. A continuation of the bearish momentum towards the 61.8% Fibonacci support level (weekly timeframe) is the most likely scenario according to the setup.

On the other hand, a potential breakout to the upside may indicates a reversal of the trend towards the trendline (T2).

Always review your own analysis. If there is a confluence between the current study and your own strategy, then you may have even better trading setups.

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