EURUSD Technical Analysis, July 06, 2020

Exclusive Markets Analysts
Exclusive Markets Analysts


EURUSD:


Technical Outlook:

EURUSD might have carved a meaningful top around 1.1420 levels, and the structure might be turning bearish in the short term. The currency pair is seen to be trading around 1.1280 levels as we prepare this article, and might find resistance around 1.1300 handle, going forward.

Alternately, EURUSD could re-test 1.1350 interim resistance, before resuming lower again. But kindly note that EURO might remain in control of bears until 1.1400/20 remains intact. The wave structure has been re-labelled on the chart presented today.

The drop between 1.1500 and 1.0636 in March 2020, could be the first impulse drop, with in the expected 5 waves at a larger degree. The entire structure between 1.0636 through 1.1400/20 could be seen as a corrective phase A-B-C, explained below.

The rally from 1.0636 through 1.1150 was an impulse, labelled as potential Wave 1/A here. This was followed by a sideways corrective triangle structure a-b-c-d-e, which terminated around 1.0775 levels, Wave 2/B on the chart.

Since then, EURUSD might have rallied to complete Wave 3/C towards 1.1400/20 respectively. If the above wave counts hold well, EURUSD should be preparing to drop lower below 1.0636, going forward. For this structure to remain intact, prices should stay below 1.1420 resistance.

Only a break above 1.1420 and subsequently taking out 1.1500 resistance will change the above bearish structure within EURUSD.


Trading Strategy:

Short against 1.1420, targeting below 1.0636.


Legal Disclaimer: This article is not investment advice. The data provided is for marketing material purposes and is not intended to confuse nor guide our clients on trading decisions. Any investment activity performed is perceived to be a self-directed decision. Exclusive Markets is not liable for losses that may occur because of a decision made after reading the information published on our research page or any other media.

Risk Warning: Trading the capital markets is risky therefore further knowledge and experience may be required. Apply appropriate risk and money management always and ensure the implementation of safe leverage.

Legal Disclaimer: This article is not investment advice. The data provided is for marketing material purposes and is not intended to confuse nor guide our clients on trading decisions. Any investment activity performed is perceived to be a self-directed decision. Exclusive Markets is not liable for losses that may occur because of a decision made after reading the information published on our research page or any other media.

Risk Warning: Trading the capital markets is risky therefore further knowledge and experience may be required. Apply appropriate risk and money management always and ensure the implementation of safe leverage.

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