EUR/USD - JUST A CORRECTION?
The price unfolds as previously forecasted.
Currently we finished 5 subwaves in the upside that formed the corrective Wave A, as part of the Wave 4 from the bigger 5 Waves on the downside now.
We will expect the corrective Wave 4 to continue to unfold, before we can say for sure that the Wave 5 impulse started on the downside!
See the chart for a more clear idea of what I'm talking about. Thank you!
From a fundamental perspective, there are a number of factors that are weighing on the euro. The European Central Bank (ECB) is expected to keep interest rates low for the foreseeable future, which makes the euro less attractive to investors. Additionally, the eurozone economy is facing headwinds from the ongoing war in Ukraine and rising inflation.
From a technical perspective, the EUR/USD pair is trading below the 200-day moving average, which is a bearish signal. The pair is also trading below the support level of 1.0832. If the pair breaks below this level, it could decline to the next support level of 1.0609.
However, there are some technical indicators that suggest that the EUR/USD pair could be bottoming out. The Relative Strength Index (RSI) is approaching oversold levels, and the stochastic oscillator is crossing over from oversold territory. This suggests that the pair could be due for a rebound.
Overall, the EUR/USD exchange rate is facing a number of headwinds from a fundamental perspective. However, there are some technical indicators that suggest that the pair could be bottoming out. Traders should closely monitor the price action in the coming days to see if the pair can break out of the current downtrend.
I hope this post is helpful.
This analysis represents only my personal thoughts and knowledge at the date it is posted.
This analysis does not represent professional and/or financial advice.
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I hope this was helpful.
This analysis represents my thoughts at the date it is posted.
This analysis does not represent professional and/or financial advice.
Trade wisely!
ymagnify.com/
This analysis represents my thoughts at the date it is posted.
This analysis does not represent professional and/or financial advice.
Trade wisely!
ymagnify.com/
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