Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

EUR/USD: Watch Today's Close

By Al BrooksForexOct 02, 2020 10:14AM ET
www.investing.com/analysis/eurusd-watch-todays-close-200539751
EUR/USD: Watch Today's Close
By Al Brooks   |  Oct 02, 2020 10:14AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

The EUR/USD forex market on the daily chart has had 2 small legs up from the low this week. There is already a wedge bear channel that began with the small bull bar on Sept. 24. But if this rally is just a bear flag and a test of resistance at the EMA and Sept. 17 low, there might be one more small bull day left in the next couple days.

EUR/USD Daily
EUR/USD Daily

If today or Monday is a big bull day that closes near its high and far above the Sept. 17 low, traders will conclude that last week’s bear breakout failed. The EUR/USD would be back its 2-month trading range. For traders to conclude that the July bull trend is resuming, they will need a strong break above the Sept. 1 high.

For 2 months, the bars have been small, the legs up and down have lasted only a week or so, and many bars have had prominent tails. This is trading range price action, which reduces the chance of a big breakout in either direction. Traders continue to look for reversals. They exit in a few days and then look for another another trade in either direction.

This week is a bull bar on the weekly chart. The bulls want the week to close near the high of the week, which is yesterday’s high. If it does, that will increase the chance that last week’s bear breakout failed, and it would increase the chance of higher prices next week. If this week has a big tail on top, which it currently has (not shown), traders will look for more sideways trading next week.

Overnight EUR/USD Forex Trading

The 5-minute chart of the EUR/USD Forex market traded below yesterday’s low, but reversed up. Yesterday was a Low 1 sell signal bar on the daily chart, but it had a bull body. Traders expected that there would be more buyers than sellers below its low.

The reversal up was not particularly strong and the EURUSD has been in a 40-pip tall trading range for most of the session. The trading range is currently a triangle. Day traders are buying reversals up from the low and selling reversals down from the high, and they are scalping.

The 2 bull overnight legs were stronger than the bear legs. That reduces the chance of a bear trend day.

The fight today will be over the close. The bears want today to close near its low and below yesterday’s low. That will increase the chance of lower prices next week. The bulls want the day and week to close near its high. That will increase the chance of higher prices next week.

EUR/USD: Watch Today's Close
 

Related Articles

Kenny Fisher
Will Canada Retail Sales Rebound? By Kenny Fisher - Oct 22, 2021

The Canadian dollar edged higher in Asia as it drives towards the 1.23 line. USD/CAD is currently trading at 1.2329, down 0.33% on the day.Retail Sales expected to reboundThe...

EUR/USD: Watch Today's Close

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Provat Biswas
Provat Biswas Oct 02, 2020 12:14PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Nice
Haitham Haugen
Haitham Haugen Oct 02, 2020 10:41AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
lol
Nekro Howl
Nekro Howl Oct 02, 2020 10:41AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
You have better analysis? Please provide us.
Aw wright
AndrewJW Oct 02, 2020 10:41AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Nekro Howl  I do; The EU inflation rate now standing at 0.2% means A: they're in a bad place to create liqiuduity to cover the PEP program which was agreed when Inflation was @1.4% and B: when this settles, they'll have 3 trillion in the bank (surplus) that nobody wants to borrow against. all along with their primary repayment guarantee generating GDP across the BLOC of Bank Stocks and Exports subsidising their debt, which is now flat; I would say, yes they're in a mess!!!! Don't read a FX chart and assume you can detemine the fiscal direction and monetary policy of the Euro and USD by drawing lines!
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email