Euro / U.S. DollarShort
Potential downside next week for EURUSD
Updated
The recent 300+ pips surge in EURUSD, devoid of pullbacks [D], raises the possibility of a downward movement in the pair next week. Several factors support this notion, highlighting a potential decline in the EUR/USD exchange rate.
Considering the overextended bullish momentum, technical resistance levels, monetary policy divergence, and economic data, there is a possibility of a downward correction in the EUR/USD pair next week. Traders should closely monitor these factors and adapt their strategies accordingly.
First target: 1.0835
Second: 1.0775
EURUSD, devoid of pullbacks [D], raises the possibility of a downward movement in the pair next week. Several factors support this notion, highlighting a potential decline in the EUR/USD exchange rate.- Overextended Bullish Momentum:
The absence of retracements in the recent rally suggests a potential overextension of bullish momentum. Profit-taking by traders and investors could trigger a downward pressure on EUR/USD. - Technical Resistance Levels:
EUR/USD has reached significant technical resistance levels, which often act as barriers to further upward movement. This could lead to a reversal as traders react to these levels. - Monetary Policy and Economic Data:
Diverging monetary policies between the ECB and the Fed, coupled with influential economic data, may favor a decline in EUR/USD. A less hawkish ECB or positive data from the US could contribute to this scenario.
Considering the overextended bullish momentum, technical resistance levels, monetary policy divergence, and economic data, there is a possibility of a downward correction in the EUR/USD pair next week. Traders should closely monitor these factors and adapt their strategies accordingly.
First target: 1.0835
Second: 1.0775
Note
First target touched to the pip, trade closed due to 4th of July break next week.
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