FX.co ★ EUR/USD

Against the backdrop of local overbought conditions in the EUR/USD currency pair on the daily timeframe, taking into account its formed impulsive downward structure as the 1st wave, a correction in the north direction can be expected in the near future. At the moment, we have a price range of 1.2082 – 1.1433, sufficient for the formation of the 1st wave of the descending formation. Confirmation of this will be the formation of the lower daily fractal. The optimal target for the 2nd correction wave will be considered a re-test of the previously broken MA100 and MA200 moving average lines, followed by a continuation of the pair's quote decline. The fact that the pair's quotes are located below the mentioned moving average lines will signal a reversal of the pair to a medium-term downward trend in its development. Moreover, the MA100 and MA200 moving average lines are already showing readiness to form a "bearish cross".