Overview of EUR/USD as of July 4, 2017
EUR / USD
The market went quietly on Tuesday. Nevertheless, before today’s holiday in the US Independence Day, speculators actively withdrew from the market which was not observed in the previous years. But now, the political situation is more unstable in the summer. Stock index S&P 500 fell by 0.49% and pulled a dollar, as the dollar index lost 0.27%. The euro increased by 20 points, respectively.
But technically there have been important changes. First of all, the bearish price channel was pierced upward. But this does not mean that the current market situation is different, as the price channel simply disappeared and now it is necessary to use other tools in determining both the upper and lower targets. On the daily scale, the price is still held by the resistance of the balance line (red).
In case of overcoming it, the resistance growth of the blue trend line with the target of 1.1758 is possible. The prerequisites for this scenario are already on the 4-hour chart, as the price was fixed above the balance line, the signal line of the oscillator Marlin moved into the growth zone – into the territory of positive numbers:
But the observed yield of the price over the balance sheet and the Marlin indicator on the growth territory is not very deep, therefore, considering the US holiday, the market will not have enough strength to break the bearish technical picture of the daily scale. That is, the situation is balanced and we are waiting for a sideways movement in general. The price support in the current situation is in line at the 1.1610 level.The medium-term bearish scenario continues and the price channel has lost its significance. For now, the nearest medium-term target is the 1.1466 level – May 2015 maximum.
* The presented market analysis is informative and does not constitute a guide to the transaction.