Market Analysis: Prices catch up with wedge drop and guns to get higher prices.
EURUSD guns for higher prices after retesting the upper boundary of the falling wedge pattern. Now stock markets have correctly used the wedge drop pattern to provoke an upward market investment after the price rise. The market rebound helps the confluence of the top edge of the falling wedge with the critical support 1.17560.
EURUSD significant areas
Resistance levels: 1.18400, 1.19100, 1.21460
Support levels: 1.16550, 1.17100, 1.17560
At that time, the oxen weakened, which led to a decline in the market. Then the euro fell back to the wedge. Fortunately, support 1.17560 has come into confluence with the top edge of the falling wedge. This confluence bounces the EURUSD and shoots upwards. The EFI (Elders Force Index) has a line of force that moves up to the zero level. This action shows a constant change of power from the bears in the recoil to the bulls in the rebound.
The market has rebounded 1.17100 and is on the rise. As in the daily chart, the period MA 9 (moving average) has dropped from the 4-hour chandeliers. However, the euro is currently experiencing a second setback since its return from the confluence. The price has fallen at the 50% Fibonacci ratio, and the next 4-hour candles now have a higher minimum, which means that the euro may have already begun to recover from its decline. The EFI power line remains above zero despite the current setback. This activity means that a considerable number of buyers work behind the scenes to defend the market.
After fully recovering from the setback, we should see that the price would reach 1.19100.
Note: Forexschoolonline.com is not a financial advisor. Do your research before investing your funds in any financial assets or products or events presented. We are not responsible for your investment results.
Sometimes we include links to online retail stores. If you click on one and make a purchase we may receive a small commission.