EUR/USD Daily rejection, continued downtrend
Outlook
As EUR/USD continues its push to the downside, we can actually see the highlighted box which shows a large rejection wick on the daily chart. Soon after, price has pushed off of that level and carried its downward momentum. Technically speaking, the move to the downside is quite straightforward and highly probable. However, there is quite a bit of upcoming news this week to be monitored as it may affect the pair quite heavily.
Technical analysis:
In addition to the clear rejection of the most recent low, we can see on the chart both the Daily 200MA which EUR/USD is strongly held down by and the 4H 200MA following along closely. This adds even more selling pressure and leads to the downside clearly being the path of least resistance. In this case, it's clear that we are headed for lower levels but how low can we expect to go? The next key level for EUR/USD is the 1.05 level. Not only is this a key psychological level, but in the past we have seen a lot of consolidation at this level and it's proven to be very difficult to break either above or below it.
Upcoming News:
In the week coming up, there is a lot of high impact news especially with FED speeches and the outcome of the news provided will likely have a large impact on the way that the trade pairs and will determine whether it maintains this downward momentum or if we see a reversal with the strengthening of the Eur. The main takeaways from the upcoming speeches will be focused around any changes to monetary policies and rates.
As EUR/USD continues its push to the downside, we can actually see the highlighted box which shows a large rejection wick on the daily chart. Soon after, price has pushed off of that level and carried its downward momentum. Technically speaking, the move to the downside is quite straightforward and highly probable. However, there is quite a bit of upcoming news this week to be monitored as it may affect the pair quite heavily.
Technical analysis:
In addition to the clear rejection of the most recent low, we can see on the chart both the Daily 200MA which EUR/USD is strongly held down by and the 4H 200MA following along closely. This adds even more selling pressure and leads to the downside clearly being the path of least resistance. In this case, it's clear that we are headed for lower levels but how low can we expect to go? The next key level for EUR/USD is the 1.05 level. Not only is this a key psychological level, but in the past we have seen a lot of consolidation at this level and it's proven to be very difficult to break either above or below it.
Upcoming News:
In the week coming up, there is a lot of high impact news especially with FED speeches and the outcome of the news provided will likely have a large impact on the way that the trade pairs and will determine whether it maintains this downward momentum or if we see a reversal with the strengthening of the Eur. The main takeaways from the upcoming speeches will be focused around any changes to monetary policies and rates.
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