EUR/USD Prediction - Next Week
EUR/USD - Week of Aug 19-23
Prediction - SELLING to Midline (~ 1.0940)
Reason - (1) Price has recently tested and was rejected at the top of the current price channel;(2) a clear H/S level coincides with the top of the current price channel, adding additional resistance; (3) in the recent past, price has respected the limits of the price channel, and without significant economic data scheduled to be released Mon - Wed, price lacks a fundamental driver to move higher; (4) for the same reason mentioned above (3), price also lacks a fundamental driver to move all the way to the bottom of the channel.
Caveats - Any surprise sociopolitical or economic development between now and Thursday (Aug 22) overrides the technical analysis described above. Furthermore, the two significant economic releases this week - EUR PMI (Thur) and USD Fed Speech (Fri) - override the above technical analysis. As such, the above technical analysis becomes obsolete on Thursday at the time of the EUR PMI release (3:30AM EST).
*** FOR EDUCATIONAL PURPOSES ONLY - Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. ***
Prediction - SELLING to Midline (~ 1.0940)
Reason - (1) Price has recently tested and was rejected at the top of the current price channel;(2) a clear H/S level coincides with the top of the current price channel, adding additional resistance; (3) in the recent past, price has respected the limits of the price channel, and without significant economic data scheduled to be released Mon - Wed, price lacks a fundamental driver to move higher; (4) for the same reason mentioned above (3), price also lacks a fundamental driver to move all the way to the bottom of the channel.
Caveats - Any surprise sociopolitical or economic development between now and Thursday (Aug 22) overrides the technical analysis described above. Furthermore, the two significant economic releases this week - EUR PMI (Thur) and USD Fed Speech (Fri) - override the above technical analysis. As such, the above technical analysis becomes obsolete on Thursday at the time of the EUR PMI release (3:30AM EST).
*** FOR EDUCATIONAL PURPOSES ONLY - Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. ***
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