At the beginning of the new week, the EURUSD pair continued its upward correction, but today's session looks a bit different. Despite the initial increases, the EURUSD pair is currently trading below the flatline. Traders wonder, whether the upward correction is coming to an end, or is it just a temporary pullback.
The answer to this question is difficult given tomorrow's ECB meeting regarding interest rates, which should increase volatility in the markets. Let's take a look at the technical situation on the chart ahead of this event.
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Open account Try demo Download mobile app Download mobile appTaking a look at the D1 interval, the pair has been moving in a downtrend for a long time. After an unsuccessful attempt to break below the parity level, an upward correction was generated. However, the market bulls weakened during today's session, which means that a resumption of the main downward trend cannot be ruled out. On the other hand, if bulls manage to uphold recent momentum, the zone at 1.0360 should be treated as nearest resistance.
EURUSD interval D1. Source: xStation5
In turn, looking at the lower H4 interval, one can notice that the pair breached the upper limit of the 1:1 structure, however failed to uphold momentum and pulled back quickly. According to the Overbalance methodology, this may herald resumption of the main downtrend. This scenario is valid until the price remains below the 1.0215 level. In this case, another attack on the psychological barrier of 1.0000 could take place.
EURUSD interval H4. Source: xStation5
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