The Euro did get a bit of a boost early during the trading session on Monday, as it was reported that Ursula von der Leyen and Boris Johnson have agreed to continue speaking. This of course helps the idea of a “risk on move”, and therefore the Euro got a bit of a bid. Furthermore, there is hope out there that stimulus talks in the United States will finally produce some type of compromise, and therefore should weaken the US dollar anyway.
When you look at the chart, you can make a strong argument for a bullish flag just now starting to break out, and that of course should attract a lot of technical traders into this pair. That being said, you do need to be cautious about the fact that the news flow is still all over the place when it comes to Brexit, so you could get a potential pullback based upon some type of random headline. (Granted, it will almost certainly affect the British pound more than the Euro, but it still has an effect.) With all this being said, I do believe that buying short-term dips probably continues to pay dividends here, because quite frankly the market is so strong.
Euro/US Dollar Exchange Rate
Today’s Forex Rates
EUR/USD FX Polls
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 1.19.
The projected upper bound is: 1.23.
The projected lower bound is: 1.20.
The projected closing price is: 1.22.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.
An inverted hammer occurred. If this occurs during a downtrend it implies a reversal. Look for a confirmation of the reversal on the bar.
A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).
A shooting star occurred (a shooting star has a small real body near the bottom of the candle and a long upper shadow). During an uptrend(which appears to be the case with FOREX EUR=) the long upper shadow indicates that the bears are gaining control and a top may occur.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
Momentum is a…
Go to the news source: Euro: EUR/USD (EUR=X) More Upside Potential