Today's session is again marked by strong falls in the indices, while the US dollar regains strength.
However, the EUR/USD pair has managed to hold firm to the USD rally, at least in the short term.
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Through the daily chart, we can see that the pair is starting to show signs of slowing down, despite the strong drops it has been registering over time.
In addition, we can see that we are facing several patterns - doji that signal some indecision in the market.
EUR/USD, Daily time frame chart. Source: xStation
4 Hours time frame chart
When we take a look at a lower time frame chart, like a 4-hour chart, we can see that the price remains sideways, however, the buyers have been able to keep the price under control near the support zone marked at 1.05.
In case the buyers manage to break above the upper limit of the range, the bullish move could extend even further.
On the other hand, if the sellers manage to break below the current range, then the dips could be prolonged.
4 hours-time frame chart. Source: xStation 5
During this session, JPY and USD leads the gains.
Source: currency-strength.com
Henrique Tomé, XTB Portugal
