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Market View

EURUSD reached 1,18 and Sellers stepped in!Whats next?

Friday, June 8, 2018 10:28 AM GMT

EURUSD reached the psychological round number 1,18 and rolled back as sellers stepped in and they are currently pushing the price lower. The greenback is near a three-week low as the markets expect ECB will begin to loosen its stimulus program.  In addition, G7 Summit in Canada will be overshadowed by Donald Trump’s pending trade war as nations align forces to retaliate against the US President’s strategy on tariffs. Regarding today’s news agenda we are not expecting any critical event except Baker Hughes US Oil Rig Count (Previous: 861).

Reviewing the daily chart, the pair closed above 21 EMA two days ago while today is testing it. In addition, we are very close a bullish crossover (5 to 21 EMA). On the other hand, Stochastics is already overbought and gives a bearish signal. This is something that buyers should pay attention. If price verifies and remains above 21 EMA, this will strengthen the positive outlook.



Heading into the hourly timeframe, our head & shoulders pattern wasn’t yet completed as the pair didn’t accomplish the pattern’s target. Although we may consider that, it has completed the ABCD’s target. The area near 1.17 is a major support level as there is a confluence of levels like the neckline (N1) and the 200 SMA. As long as the price stays above it, the intraday outlook is positive.


(EMA = Exponential Moving Average, SMA = Simple Moving Average, 5EMA = Blue, 21EMA = White, 200SMA = Yellow)

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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