Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Euro Fights At Important Resistance Levels

ByAxiory
AuthorTomasz Wisniewski
Published 05/20/2020, 06:35 AM
Updated 01/03/2021, 09:10 AM

After Monday’s all mighty upswing, Tuesday brought us a bearish correction. So far, the size of this correction is very small and it seems that buyers are still in control of the situation. Today, we don’t have any major events in the macro calendar, so we expect that optimism will not go away and global indices will remain bullish.

We can see two inverse head and shoulders pattern on the DAX. The first one gave us the buy signal on Monday and the second one is being created as we speak. The bottom of the head is on the 23.6% Fibonacci level and the neckline is on the 11100 level. A breakout of the neckline will significantly increase the chances of another bullish wave.

Next, we have two setups with the EUR. Yesterday, the price of the EUR/USD bounced from the upper line of the triangle but that wasn’t the only attempt to break this resistance. Buyers are trying again today but so far; the result is pretty much the same. Technically, the price is creating a head and shoulders pattern. Currently, the right shoulder is being created but the results should be out soon. A breakout of the red neckline will give us a signal to sell and a breakout of the upper blue line will deny the H&S pattern and bring us a mid-term buy signal.

The second setup is the EUR/GBP, which has recently been moving with grace, respecting the most popular price action principles. After a triangle and a pennant, we currently have a rectangle, which is a trend continuation pattern. Most recently, the price bounced from the lower line of the rectangle and the mid-term up trendline. A further breakout to the upside looks imminent.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.