Happy Friday, bug!
If you haven’t had enough dollar-related trades this week, you definitely want to watch EUR/USD for a potential bounce!
This is what I see on a 4 hour time frame:
EUR/USD forex for 4 hours Planned by TV
As you can see, EUR/USD is having difficulty making new highs above 1.1000 after starting an uptrend from 1.0650 levels.
Fortunately for the euro bulls, EUR/USD also found support somewhere along the 1.0870 area.
why not? The level points to the 38.2% Fibonacci level of the June rally and is approaching the 100 SMA on the 4-hour time frame.
A bullish divergence on the chart doesn’t hurt either.
Will EUR/USD see another bounce from the inflection point?
The EUR bulls could start expanding at current levels and aim for previous highs like 1.0970 or 1.1000 to catch appropriate moves.
Do you think the EUR/USD is on its way down instead?
You can also wait for a clear break below the 1.0850 support area before you can target areas of interest like 1.0800 or 1.0750 depending on the downside momentum.
what do you think? What direction will the EUR/USD pair go?