EXY CURRENCY INDEX, Preliminary Range, These Level To Watch Now!
Updated
Hello Traders Investors And Community, welcome to this analysis where we are looking at the EXY CURRENCY INDEX which is the index to show the value of the euro in comparison to other currencies where we are looking at recent events, the current formational structure and what to expect the next times in order to handle the situation accordingly and in the right manner. The index experienced a steady recovery since the corona breakdowns seen this year where it moved higher but the question now is if this strength can hold on or lower levels will be visited, in this case, I detected some important signals which we should consider now in order to upcoming price-actions.
Looking at my chart you can watch there that the index has formed three consecutive uptrend lines marked in blue and as the index now approached resistance at the 118 to 119 resistance level marked in light-blue this is an important range where the index can bounce again to the downside and as the index is overbought this is not far away. When the first trendline is broken to the downside it will give a first bearish shape and the index will move on to the next trendline testing it from there the index can either stabilize and move higher again or confirm the second trendline to the downside which will show up in a greater increase of bearishness at least testing the back-up-zone marked in blue.
Overall we can expect the pull-back happening as mentioned the next times and for further stabilization and continuation, it forms high importance that the index bounces at the blue level between the 23.6 and 38.2 Fibonacci-support marked in my chart, when this does not happen and the index declines more from there the next remaining supports will be tested which is the decreasing support line in orange but till then the index has some good potential to confirm further bullishness in the range. It will be highly interesting how the situation is playing out here and how far and strong the pull-back is going and if there will be a solid stabilization or further declines to follow up with.
In this manner, thank you for watching, support for more market insight, all the best!
"Trading effectively is about accessing possibilities, not certainties."
Information provided is only educational and should not be used to take action in the market.
Looking at my chart you can watch there that the index has formed three consecutive uptrend lines marked in blue and as the index now approached resistance at the 118 to 119 resistance level marked in light-blue this is an important range where the index can bounce again to the downside and as the index is overbought this is not far away. When the first trendline is broken to the downside it will give a first bearish shape and the index will move on to the next trendline testing it from there the index can either stabilize and move higher again or confirm the second trendline to the downside which will show up in a greater increase of bearishness at least testing the back-up-zone marked in blue.
Overall we can expect the pull-back happening as mentioned the next times and for further stabilization and continuation, it forms high importance that the index bounces at the blue level between the 23.6 and 38.2 Fibonacci-support marked in my chart, when this does not happen and the index declines more from there the next remaining supports will be tested which is the decreasing support line in orange but till then the index has some good potential to confirm further bullishness in the range. It will be highly interesting how the situation is playing out here and how far and strong the pull-back is going and if there will be a solid stabilization or further declines to follow up with.
In this manner, thank you for watching, support for more market insight, all the best!
"Trading effectively is about accessing possibilities, not certainties."
Information provided is only educational and should not be used to take action in the market.
Note
ANALYSIS UPDATE: The EXY continued with the appropriate price action determination to greatly bounce within the support lines and the back-up cluster.The EXY since rightly bouncing within the major back-up cluster continued with the decisive price action acceleration and emerged with a final breakout above the boundaries.
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