EURUSD → The market is preparing for further decline

28 de jul. de 2023

EURUSD is forming strong declines after the news on Wednesday and Thursday. The price is weakening by 2.95% amid the strengthening of the dollar



On the chart I have indicated the current range with a width of 3.97%. The range boundaries are resistance at 1.1075 and support at 1.0635. At the moment the asset is within the ascending channel, but this is not important for us, we are interested in the ascending support line, which plays a key role for the price. We are interested in the price reaction to this line to determine further decline. We should wait for either a breakout or a false breakout, the signal for a set-up will be consolidation below or above the line. Accordingly, if the price consolidates below the level, the market will form an area for entering short positions
Moving averages act as resistance

Support levels: Trend line, 1.0948, 1.0835
Resistance levels: 1.1075
Most likely in the long term we should expect a decline, but a rebound is possible against this line before a further fall. The lower boundary of the range could be a medium-term target.

Regards R. Linda!

29 de jul. de 2023

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