Hi Traders/Steemers,
This is my very first post ever! Trading is one of my biggest passions, with forex being one of my key trading components.
Today we shall look into several analyses of one of the major pairs, EUR/USD. This pair is one of the most traded currency/forex pairs in the market, with massive volumes traded every session.
Fundamentally-speaking, on Thursday (26th October 2017), the European Central Bank (ECB) had decided to extend Quantitative Easing (QE) & Bond-Buying until September 2018, however, with cutting bond purchases to 30 billion EUROs a month beginning in January 2018. This translates to a dovish (bearish) tone by the ECB, as it still seeks to stimulate the economy of the Eurozone further. In addition, Catalonia had just declared its independence from Spain! This sent Spanish stocks diving, while further repercussions are foreseen within the Eurozone itself. On the other hand, the US economy grew by 3.0%, with the House Republican garnering a narrow-victory to pave way for a new tax-cut policy, and a high-probability Fed rate-hike is foreseen in December 2017. All these bode well for the American economy/bullish momentum of the USD.
Technically-speaking, taking a look at the EUR/USD chart on the D1 timeframe, shows a bearish reversal pattern. The support of the DIAMOND TOPS pattern was broken (1.175) , as well as the support neckline of the Head & Shoulders (1.167).
At the moment, a short-term bounce to the broken neckline at 1.167 is foreseen, due to the oversold H4 timeframe (RSI 28.7), before the resumption of the downtrend.
The take-profit target 1 (TP1) is planned at 1.142 (38.2%) of Fibonacci Retracement, and further price action shall be monitored with the ultimate take-profit goal of filling the Macron gap at 1.079.
Best of luck, and green pips to all!
Disclaimer: This is my personal opinion, and not an investment advice. Please exercise due diligence and risk-management during trading. Cheers!