Energy markets have reached record highs, after the historic plunge in global energy consumption in the early beginning of the Covid-19 crisis.
In less than 6 months, EURUSD has fallen more than 1000 pips amid concerns over Europe’s slowing economic growth as the region struggles with surging energy prices and new COVID restrictions. At the same time, investors have been turning to the US dollar as they see the FED tightening monetary policy faster than other major central banks.
Weekly Timeframe
According to the weekly timeframe, EURUSD was testing the 61.8% Fibo level for the last two weeks. Currently, failing to keep the price above the Fibonacci support level, the pair is still continuing its downward spiral.
Daily Timeframe
Heading to the daily timeframe, EURUSD is trading within the channel C1. Today, the Bears are keeping the pair under the 61.8% Fibo level and the trendline T1.
Going to more technicals, RSI is remaining below the major 50 level, which shows the weakness of the Bulls to take the control. On the other side, it seems that SO may find an upcoming support at the trendline T2, which may give potentially a small reversal towards the blue resistance range. Lastly, CCI broke the main 0 level to the downside.
Overall, the setup indicates a potential continuation of the downtrend towards the down side of the channel C1. On the other hand, if price breaks above the blue resistance range, then the scenario is busted.
Disclaimer: The views expressed do not constitute investment or any other advice/recommendation/suggestion and are subject to change. Reliance upon information in this material is at the sole discretion of the reader. Opinions expressed in the report do not constitute an offer or invitation to anyone to invest or trade.
The Ditto Team.
In less than 6 months, EURUSD has fallen more than 1000 pips amid concerns over Europe’s slowing economic growth as the region struggles with surging energy prices and new COVID restrictions. At the same time, investors have been turning to the US dollar as they see the FED tightening monetary policy faster than other major central banks.
Weekly Timeframe
According to the weekly timeframe, EURUSD was testing the 61.8% Fibo level for the last two weeks. Currently, failing to keep the price above the Fibonacci support level, the pair is still continuing its downward spiral.
Daily Timeframe
Heading to the daily timeframe, EURUSD is trading within the channel C1. Today, the Bears are keeping the pair under the 61.8% Fibo level and the trendline T1.
Going to more technicals, RSI is remaining below the major 50 level, which shows the weakness of the Bulls to take the control. On the other side, it seems that SO may find an upcoming support at the trendline T2, which may give potentially a small reversal towards the blue resistance range. Lastly, CCI broke the main 0 level to the downside.
Overall, the setup indicates a potential continuation of the downtrend towards the down side of the channel C1. On the other hand, if price breaks above the blue resistance range, then the scenario is busted.
Disclaimer: The views expressed do not constitute investment or any other advice/recommendation/suggestion and are subject to change. Reliance upon information in this material is at the sole discretion of the reader. Opinions expressed in the report do not constitute an offer or invitation to anyone to invest or trade.
The Ditto Team.
