New week on EURUSD begins from strong decreases, mainly because of strong US dollar. On the way of bears there is psychological support in 1.07 area.
During writing this analysis EURUSD lose 0.60% compared to Friday’s close. Despite that 57% are in long positions.
Bulls have the advantage of close support at 1.07. EURUSD few times already tested this level from both sides, each time there was reaction. Strong decreases which happened during European session were also continued by Americans. Only mentioned support at 1.07 stopped bears and it looks like it is time to buy oversold euro.
Probability of gains is high also because EURUSD is currently in the area between two moving averages. When we analyse the chart we can notice that this average area was a good, moving support. Also the fact that on H1 chart there were 9 consecutive bearish candles is in favour of bullish rebound.
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In short term gains can reach 1.0750/60 area where there is local resistance area and short term trend line. In longer perspective EURUSD is still trapped between 1.07 and 1.08. Only confirmed break of one of these two levels will give opportunity to forecast future movement of Eurodollar.