Relevance up to 04:00 2020-02-02 UTC–8
EURUSD is bouncing off the 1.0990 bottom. There are several signs indicating the bounce will continue towards 1.1070-1.11 area. This is not the time to be bearish EURUSD as this could unfold into a longer-term bottom.
Red upward sloping line – support trend line broken, now resistance
Green line – resistance trend line
Red horizontal lines -Fibonacci extension targets
EURUSD has shown bullish divergence signals in the RSI in the short-term, as price was making new lows and the RSI not. Price has made a bounce from 1.0990 to 1.1038 and now after a pull back we see strength by buyers once again. This bounce is expected to push price to 1.1070 at least. Most probable target is the 1.11 zone where we find a confluence of both the Fibonacci targets and the two trend lines that converge. A rejection of this bounce at 1.11 will be seen as a back test and we should then expect resumption of downtrend. If bulls manage to break above the red and green trend lines we could have an important low at 1.0990 and we could expect something bigger above 1.1240. Until then we have lots of time. Support at 1.0990 is key for this short-term bullish scenario and must not break.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
Performed by Alexandros Yfantis,
InstaForex Group © 2007-2020
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