EURUSD: possible increase after a fake breakthrough of a key support zone

22.06.2018 / 00:01

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Forex EURUSD Technical Analysis Our expectations:

Downward momentum is losing strength, the price is making unsuccessful attempt to breakthrough key support zone. In this situation, the bulls will probably prevail and give strength to an upward trend. The price formed a Double bottom in the support zone, but the formation has not yet been confirmed. Here aggressive traders have a good opportunity to put positions with a close stop.

Price Action: Bullish Engulfing Pattern at support zone.

Indicators:
There is a mismatch between price action and indicators, but the indicators follow the movement rather than precede it. Price below 50 and 200SMA (negative signal).
Demarker on neutral territory.

SL: 1.48

Alternate scenario: Verified breakthrough 1.48 level could trigger a lot of short positions, which would lead to a sharp decline and a new bottom at the cross.

Trader Georgi Bozhidarov

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EURUSD: possible increase after a fake breakthrough of a key support zone

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