The first two days of the current week for the EURUSD pair have been falling, the exchange rate has dropped by nearly 150p. Today we can see an attempt to make up for the losses. The signal of mood change is the last candle on H4 interval. It creates a formation of the bullish engulfing, which is usually a signal for an upward correction.

EURUSD bullish
EURUSD H4 – bullish engulfing pattern

At the moment the price is above the upper limit of the formation and if this tendency to end the breaking candle (15 o’clock) is maintained it will confirm the long signal. The bullish scenario is supported by MACD, which has set a minimum and has gone into the upward phase.

The course of this pair may also be affected by the news that moods around the trade treaty between the EU and the UK are improving, according to Michael Barnier today.

The context is that he was asked if he is optimistic about the agreement, he replies that he remains “determined” and refuses to comment on the Internal Market Act (UK).

Needless to say, Barnier will be in London for informal talks until Friday, we will find out more about the future of the agreement at the end of the week.

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