EUR/USD Forex Signal: Downwards Consolidation to Support

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EUR/USD Forex Signal: Downwards Consolidation to Support
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I wrote last Monday that there was heavy technical resistance pushing the price lower, and a very strong US Dollar. However, I thought that we may have seen a bullish short-term double bottom if the price could go on to get established above $1.0960. Yet I was really looking for a short trade from a bearish reversal at any resistance level.

There were no good short trade setups that day, and this was not a great call as the price chopped around what I had thought to be the pivotal point at $1.0960. Yet once the price did fully clear that level the situation turned much more bullish. Overall, this was not a great call., with the US Dollar falling out of favour after the Fed announced its 0.25% rate hike – maybe a case of “buy the rumour, sell the fact”.

The price rise here peaked on Thursday, and since then we have seen a weakly bearish and consolidative pattern, with new closer support and resistance levels printing. This points towards lower volatility and more ranging price action. I think it is quite likely that we will see the price remain between $1.1000 and $1.1072 today, but if the price can break below the big round number at $1.1000 it would be likely to fall to $1.0955.wait for the price to fall to reach the zone between $1.1000 and $1.1018 and look for a long trade from a convincing bullish bounce there. I think an even better trade will set up if the price can make two consecutive hourly closes not far below $1.

There is nothing of high importance due today regarding the EUR. Concerning the USD, the Chair of the Federal Reserve will be giving a minor speech about the economic outlook at 4pm London time.

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