The pair traded downward on Wednesday and broke through the support level 1.1674 (black bold line). Today, the downward trend is likely to continue. As per the economic calendar, euro news is expected at 08:00 UTC, and dollar news is expected at 12:30 and 14:00 UTC.
Trend analysis (Fig. 1).
The market may move downward from the level of 1.1662 (closing of yesterday's daily candlestick) with the target at 1.1590 - a 50% pullback level (red dotted line). Upon testing this level, the price may begin to move upward with the target at the resistance level 1.1673 (black thick line). If this level is reached, the upward trend may continue with the next target at 1.1823 - a 61.8% pullback level (blue dashed line).
Figure: 1 (daily chart).
Comprehensive analysis:
- Indicator analysis - down;
- Fibonacci levels - down;
- Volumes - down;
- Candlestick analysis - up;
- Trend analysis - down;
- Bollinger lines - down;
- Weekly chart - down.
General conclusion:
The market may move downward from the level of 1.1662 (closing of yesterday's daily candlestick) with the target at 1.1590 - a 50% pullback level (red dotted line). Upon testing this level, the price may begin to move upward with the target at the resistance level 1.1673 (black thick line). If this level is reached, the upward trend may continue with the next target at 1.1823 - a 61.8% pullback level (blue dashed line).
Another possible scenario: from the level of 1.1662 (closing of yesterday's daily candlestick), the price may continue to move downward with the target of 1.1590 - a 50% pullback level (red dotted line). Upon testing this level, the price may continue to move down, with the target at the historical support level 1.1544 (blue dashed line).
