The quotations of the main currency pair - EURUSD have been in a downward trend for a long time. Looking at the chart on a daily basis, it is possible to determine a wide price channel, in which the price has been moving since February this year. The recent corrective movement, which accelerated last week, was quickly halted. The price rebounded from the resistance zone at 1.0360, which was the result of previous price reactions (marked with arrows) and the trend line drawn after the recent maxima. Currently, the price is slowly moving towards the level of 1.0100, which, if exceeded, an attack on the recent minima at 1.0000 is not excluded. It seems that only a move above the level of 1.0270 and then 1.0360 could change the balance of power on the chart. Nevertheless, for the moment, technical analysis indicates the possibility of a continuation of the movement within the downward trend.
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Create account Try a demo Download mobile app Download mobile appEURUSD D1 interval. Source: xStation5
As for the lower time frame - H1, here the technical situation also favors sellers. Currently, it is worth noting the average of the last 100 periods (EMA100), which yesterday, as well as today, stopped the larger upside. It seems that as long as the pair remains below it, the chance of attacking the support zone at 1.0100 is high. A change in short-term sentiment, on the other hand, is to be expected only after a move above the aforementioned average (red line).
EURUSD H1 interval. Source: xStation5
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