EURUSD is in a critical area this week.
TECHNICAL ANALYSIS
EURUSD has been in a long term bear trend, but has been ranging for quite some time now. Now, price is flirting with the 100 daily MA, a key indicator of further price movement.
- A break higher, through the 100 daily MA, could mean a major correction or formation of a new bull trend. Also, on the hourly time frame, buyers have already pushed price above the 100d and 200d MA, indicating a short term bullish bias.
- A bounce off of (respecting) the 100d line is a strong indication of the remaining health of the daily bear trend, and sellers will most likely look at this level to defend price.
FUNDAMENTAL ANALYSIS
EURUSD hopped around a lot last week, with interesting fundamentals in the US as the interest rates on benchmark T Bills skyrocketed to 7 year highs, and equities experienced a massive sell-off.
There is a lot of USD news coming up, so, with a weak showing on US retail sales and a continuation of US equity sell-off, the USD could be very bearish and the EURUSD would shoot up.
However, the inverse, and a strong USD showing this week would do the opposite.
SENTIMENT ANALYSIS
It seems the sentiment is mixed on EURUSD now, as indicated by the extremely range-bound nature it has been in. This excites me as this could be setting up a major trend.
TECHNICAL ANALYSIS
EURUSD has been in a long term bear trend, but has been ranging for quite some time now. Now, price is flirting with the 100 daily MA, a key indicator of further price movement.
- A break higher, through the 100 daily MA, could mean a major correction or formation of a new bull trend. Also, on the hourly time frame, buyers have already pushed price above the 100d and 200d MA, indicating a short term bullish bias.
- A bounce off of (respecting) the 100d line is a strong indication of the remaining health of the daily bear trend, and sellers will most likely look at this level to defend price.
FUNDAMENTAL ANALYSIS
EURUSD hopped around a lot last week, with interesting fundamentals in the US as the interest rates on benchmark T Bills skyrocketed to 7 year highs, and equities experienced a massive sell-off.
There is a lot of USD news coming up, so, with a weak showing on US retail sales and a continuation of US equity sell-off, the USD could be very bearish and the EURUSD would shoot up.
However, the inverse, and a strong USD showing this week would do the opposite.
SENTIMENT ANALYSIS
It seems the sentiment is mixed on EURUSD now, as indicated by the extremely range-bound nature it has been in. This excites me as this could be setting up a major trend.