Forex Technical Analysis And Forecast: EUR/USD Pair
Bias: See 1.0944-50 cap for losses to 1.0867-79 and later South to 1.0825-50 area
The underlying MT direction is Bearish, and the daily bias is Bearish. So, the main risk is down.
Ensure that Key resistances levels hold.
Key support marks suggest continuation of the Bearish move. Consider confirming this with a Bearish set up pattern in price or an indicator. And consider a possible larger reversal higher should Key MT resistance break and is supported by a Bullish set up in price or an indicator.
Consider buy set ups at: Neutral
Consider sell set ups at: 1.0940 – 50
The initial decline stalled way above the 1.0901 area, the correction was shallow, seeing a direct decline.
Thus, as the day starts Friday, should see the 1.0944-50 area cap for losses below 1.0893 and to the 1.0867-79 area for a minor correction (10-15 pips) and for losses to reach the 1.0825-50 area. This should provoke a correction, maybe to around 40-60 pips approx before losses continue. Then challenge the 1.0808 low, then down to the 1.0769-84 and likely 1.0723-45.
Only a move directly above 1.0950-66 frustrates this and suggest gains back towards the 1.0984-1.1010 area.
If the move is any higher, then expect 1.1029-55 and review.
See the current correction as temporary and expect losses to resume in here.
My major technical outlook remains Neutral awaiting clear direction.
After finding a trading system that works for you, the more cryptic and esoteric fields of study can then be incorporated into your technical and trading toolbox.The bottom line when utilizing any type of analytical method,technical or otherwise, is to hold to the basics, which are methodologies with a proven track record over a long period.
Technical analysis is a method of forecasting price movements by looking at purely market-generated data. Price data from a particular market is most commonly the type of information analyzed by a technical trader.
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