The EURUSD price is moving higher on a retracement of the weekly downward trend. Could the price retest the 0.9900 lows?
Watch the video to learn more…
The EURUSD price could head back to the weekly lows of 0.9900 as the USD continues to weaken in the short term. Recently the ECB President Lagarde talked of further rate hikes with ECB policy makers expecting a 75bps hike. This could be supporting the strength in the Euro on the lower time frames. In the USD Index video yesterday we talked of the trend finding a top with the potential for the price to trade back to key weekly highs at 110.80. If this happens then the EURUSD price would continue to trade higher into the key lows.
Looking at the chart the price is forming a rejection of the weekly support of 0.9600. This is confirmed by the 4hr time frame beginning to form higher highs and higher lows. This could then offer long opportunities to buyers to trade back to those major lows at 0.9900. If the price was to retest the recent demand zone or previous 4hr highs and buyers stepped in forming bullish price action we could expect the move retracement phase to continue.
Did you see our USD Index Analysis? You can see it here.
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