EUR/USD Flattened But Prices Are At Risk To Fall Again


Price movements on the main charts were seen as 'sad' on Wednesday's trade yesterday in the absence of economic data to drive the currency market.

The US dollar is showing a flat move after a recovery at the beginning of the week compared to a sharp decline that erupted at the end of last week's trade.

The hawkish view by members of the Federal Reserve (Fed) managed to prevent the US dollar from continuing to fall with the market's focus returning to the central bank's monetary policy.

Although the consolidation is not aggressive, but investors examine the indicators on the main charts for changes in price trends that occur.

As on the chart of the EUR/USD currency pair, a bearish price signal is assessed after the price starts to reverse direction from last week's surge pattern.

The price decline is slow but it is seen that it has started to move below the barrier line of the Moving Average 50 (MA50) on the 1-hour time frame on the chart which is the direction boundary for the price.

The price moved flatly around the 1.07400 level throughout Wednesday yesterday with the expected downward trend.

For a lower downside target, the price is seen to head towards the concentration level at 1.07000 and the price reaction around that will be observed.

If it breaks lower, the target will move to the previous support zone at 1.06000 and the price will record the latest 3-week low.

However, if the price starts to rise above the MA50 barrier, it will be a sign that the upward trend in prices will resume.

The price increase will test the resistance at 1.08000 and if it finally manages to break through it, the latest high level will be seen with the target being at the 1.09000 zone.