December 28, 2021

Stay Horizontal! Investors Are Still Looking For A Clearer EUR/USD Direction

 The market appears to be still volatile as French Prime Minister Jean Castex has announced sanctions in the country that have had little effect on the movement of the Euro currency.


However, the USD remained unable to shine again as the move continued to be haunted by declining demand for it amid risk-on sentiment.


Analysts are of the opinion that the USD is likely to be re -stimulated to maintain its position as the king of the currency in line with the hawkish statement from the Federal Reserve (Fed).




The price on the chart of the EUR/USD pair seems to be witnessing extreme movements after the price showed a rather violent horizontal rhythm to continue hovering in the focus zone of 1.13000.


That is, the 1.13000 zone is still seen as the most difficult bulwark to break as the price also appeared to rebound in the trading session on Monday before closing the market with a bullish candle.


However, the price movement seems to have started the rhythm at the beginning of the Asian session today (Tuesday) by showing a plunge action of around 15 pips that seems to want to test the trendline support again.



This situation can of course be taken into account in anticipation that the price may once again touch the RBS zone (resistance become support) 1.13000 and will be evaluated for the next indicator.


But if the price movement continues to continue the more aggressive downward pattern, then the support level at 1.12650 will likely be the first target to be hit again.


While the resistance level around 1.13600-1.13500 which is also the highest level of 4 weeks may be reached again if the price re-highlights the excellent performance in making the rise.


The next rise is very likely to support the continued upward movement of the price which is expected to be able to move to the 1.14000 zone and thus will give an early signal of a bullish trend.