The EURUSD price is forming a consolidation on the daily time frame which could suggest a breakout is to follow.
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The price of the EURUSD pair is forming a consolidation pattern on the Daily time frame which could see the price rally in the near future. Why do you want to be looking for a long position here on EURUSD? Recently the ECB have announced they will be hiking interest rates coming from negative rates. This news is positive and history tells us that these announcements can lead to the currency being bullish in the right circumstances. Also, the strength meter highlights that the EURO is the strongest currency and the USD is on the decline. This should lead to an upward trend forming on the EURUSD currency pair.
The Daily chart price action shows the price forming a consolidation after forming a new high. Usually when the price action is like this we see the price break to the upside. The daily candlestick is forming as an indecisive candle within the large bullish candlestick which is another sign that the price could be heading higher. If the price was to break out of this consolidation we could see a rally much higher.
If the price is likely to move higher we could look for an opportunity to look for a bullish idea on a lower time frame. The hourly chart shows the price forming a consolidation after finding significant demand at a weekly high volume level, this could see the price move higher if we see a bullish breakout form.
Do you trade EURAUD? See our latest analysis on the forex pair here.
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