ZuluTrade Blog

EURUSD, a make or break case

Market View | Tuesday, July 13, 2021 9:58 AM GMT

500 pips. That’s how much EURUSD has fallen in the last two months.
It is undeniably a huge drop. A drop with rotation swings of no more than 120 pips. That constitutes the move as a really sharp one and it indicates a possible shift in the mid-term spectrum of the pair.Bulls have been unable to control this move and everything shows that we are going to see a continuation, or maybe not…

Last week, EURUSD made a reaction on the zone of 1.178-1.179.
This reaction was enough to bring the price 100 pips up to the resistance of 1.188.
The retracement that is being performed today, is starting to form a very well known pattern.

CopyTrade with ZuluTrade

More specifically in the four Hour timeframe, an inverse head and shoulders are starting to form.
This has been many times the trigger for big reversals, especially when happening in bigger timeframes.
If it is combined with the big divergence of the MACD then the pattern is starting to get stronger. This could give a reaction of another 100 pips, provided that the neckline(1.188) of the formation would break successfully.

A similar situation is also visible from the daily timeframe.
The parallel lines show the potential resistances and targets.
Alongside the 200 EMA which is on the same area of 1.198-1.199, it makes this spot more and more the potential target.

However, this indeed is a make or break situation. Because if the pair fails to break the resistance of 1.188 then a continuation is most imminent with the previous lows of 1.178 to be the first main target of the bears.

CopyTrade with ZuluTrade

Whichever is going to be the outcome, investors should be aware of the sharp moves in the forex market as the summer might be here, but volatility has not eased down yet.



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 represent the opinion of ZuluTrade Social Trading Platform and do not constitute an offer or invitation to anyone to invest or trade. Every metric and the statistical number is a result of a past performance, which does not constitute a promise or a certainty for a future one.

Comments are closed

Trading spot currencies involves substantial risk and there is always the potential for loss. Your trading results may vary. Because the risk factor is high in the foreign exchange market trading, only genuine "risk" funds should be used in such trading. If you do not have the extra capital that you can afford to lose, you should not trade in the foreign exchange market. Forex Brokers and ZuluTrade are compensated for their services through the spread between the bid/ask prices or there may be a cost to initiate a trade through the bid/ask spread. Signing up is totally free, and there is NO contract and NO monthly fees, ever.

This blog is for informational purposes only. This blog is not intended for distribution channels and may not be reproduced or distributed without the permission of Zulu Trade ltd or any of its affiliated entities (“ZuluTrade”). All opinions, news, prices or other information contained in this blog are provided as general market commentary and this report does not contain and it is in not to be considered in any circumstance as market analysis, offer or solicitation to buy or sell any financial instruments, personalized or general recommendation for any investment decision or investment strategy by ZuluTrade, in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. The information contained in this blog should not be construed as financial or investment advice on any subject matter. The financial instruments referred to herein may not be suitable for all investors and any investments on such financial instruments requires the assessment by each investor and its counsels of the investor’s investment characteristics, including the investment risks which the latter is willing to assume. This blog has been based on information which has been made public, obtained from sources believed to be reliable, but it has not been verified by ZuluTrade. No representation or warranty (expressed or implied) is made as to the accuracy, completeness, correctness, timeliness or fairness of the information or opinions herein, all of which are subject to change without notice. No responsibility of liability whatsoever of howsoever arising is accepted in relation to the contents hereof by ZuluTrade or any of its directors, officers, employees. Further, no representation is being made that any results will be achieved, and past performance is not indicative of future performance.