Forex forecast / EUR / USD / Our expectations:
The price reaches 23.6 Fibonacci and levels of horizontal support. DeM (8) turns below 40, which creates the likelihood of reversing the short-term downward movement. DeM Sequential reaches 9th, which is a signal with a high probability of expecting an increase. The price is at the bottom of a probable flag formation, which gives an opportunity to look for a good risk / reward ratio with a stop at 1.1630.
Fundamental: Today we expect data for ADP Nonfarm Payrolls, which is likely to set the next short-term direction to the pair. Speculations for a new Fed chairman is creating a bullish sentiment for the USD, but long-term expectations for a strong EUR are likely to prevail. We can use the volatility today to position ourselves with long positions.
Alternative scenario: Breakout below 1.1690 of the last consolidation will give reasons for short positions and probability of a deeper correction to 38.2% or 50% Fibonacci.
Trader Nikolay Georgiev
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