empty
 
 
You are about to leave
www.instaforex.eu >
a website operated by
INSTANT TRADING EU LTD
Open Account

06.07.202206:49 Forex Analysis & Reviews: Trading plan for EURUSD on July 06, 2022

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Exchange Rates 06.07.2022 analysis

Technical outlook:

EURUSD has dropped towards 1.0235, fresh swing lows, as bears tightened their grip on Tuesday. The single currency pair is seen to be trading close to 1.0255 at this point in writing and it might print yet another shallow low towards 1.0200 in the near term. Bears need to hold prices below the 1.0616 initial resistance to remain in control going forward.

EURUSD has been dropping from the 1.2350 high since January 2021 as seen on the daily chart here. Bears have been successful in breaking below significant support at 1.0350-52 since December 2016. A high probability remains for a pullback rally from current levels. However, kindly note that the next target could be towards parity levels.

EURUSD's price drop has been accompanied by a strong bullish divergence on the daily RSI as seen on the chart presented. It could be an indication of a potential trend reversal soon. With regards to price action, bulls need to take out the 1.0616 resistance to confirm that they are back in control and that the trend has potentially reversed.

Going forward:

EURUSD is facing short-term price resistance at around 1.0450 as marked on the 1-hour chart. Bulls need to push through the above initial resistance to confirm a potential trend reversal and that they are back in control. Until the 1.0450 resistance is intact, the potential remains for yet another low below 1.0235 in the near term.

Trading plan:

Preparing for a potential trend reversal soon.

Good luck!

Oscar Ton
Analytical expert of InstaForex
© 2007-2024

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.




You are now leaving www.instaforex.eu, a website operated by INSTANT TRADING EU LTD
Can't speak right now?
Ask your question in the chat.

Turn "Do Not Track" off