EURUSD Technical Analysis, July 13, 2020

Exclusive Markets Analysts
Exclusive Markets Analysts

EURUSD:


Technical Outlook:

EURUSD is looking to resume its drop towards 1.1000 and further as the currency hits intraday resistance around 1.1325 today. The currency had carved a meaningful lower top around 1.1365 levels, over the last week and is expected to hold below the mark.

Looking into the wave structure sine 1.1420 highs, EURO had dropped towards 1.1167 levels, which could be the first leg lower. Thereafter, a complex corrective wave unfolded and pushed prices higher through 1.1365 levels.

Also note, that the corrective rally had managed to reach fibonacci 0.618 retracement of the earlier drop between 1.1420 and 1.1167 respectively. The entire structure described above can be potential Waves 1 and 2 (not labelled today).

If the above counts hold well, EURUSD should be heading lower towards 1.1167 and 1.1000 levels, going forward. Also note that potential remains for a push below 1.0636 levels, as Wave 3 progresses. It is too early to confirm right now and a break below 1.1167 would accelerate the drop.

On the flip side, if EURUSD breaks above 1.1365 interim resistance, it would attempt to break above 1.1420 and also push towards 1.1500 levels, going further. In that cast, EURUSD would change its long term trend to bullish.

Until the above turns true, we favour bears to resume lower any moment. They have managed to test fibonacci 0.618 retracement of the drop between 1.1365 and 1.1260 respectively. Expect the down trend to resume anytime soon.


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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