FX.co ★ ForexRich | EUR/USD

Yesterday, the pair surged and managed to hit the high from Friday. This upward movement opened the doors towards the next resistance level at 1.0780. It came close to this mark but failed to breach it as it bounced off the upper boundary of the divergence and subsequently reversed to the downside, forming a moderate impulse. The descent was gradual, reaching the support level at 1.0730, and upon breaking through, it allowed for the continuation of the decline towards the second support at 1.0675. Here, I expected that the pair might attempt to reach the upper boundary of the diverging triangle once more

For today, I expect the continuation of the current move towards 1.0675. I suspect the pair won't break below this range on the first try and would suggest a retracement back to the resistance at 1.0730. A reversal could occur at this point, but if the pair manages to pass through, another impulse could extend towards 1.0780, the key resistance level, and the upper boundary of the diverging triangle. A downward reversal and a break through the 1.0675 level could set the stage for a continued fall of the euro towards the lower boundary of the triangle at 1.0525. While not certain, it is possible that within this week, the pair may complete the impulse near the lower boundary of the triangle at 1.0525. Conversely, a break through the upper boundary at 1.0780 would form an ascending movement to 1.0870.