EURUSD: A Technical Approach to the Euro Currency 1D (Jun. 28)

X Force Global Analysis:


In this analysis, we take a purely technical approach to the Euro's daily chart.

Analysis

- We can first spot that a bullish adam and eve pattern has played out
- After testing its previous high, the Euro is consolidating within a descending parallel channel
- The Relative Strength Index (RSI) is currently trading at neutral zones
- Indicators create lower highs and lower lows along with the price
- The Moving Average Convergence Divergence (MACD) has formed a death cross, but the bearish histograms are inconsistent
- The Bollinger Bands are narrowing, which is a sign that a big measured move is highly likely to take place
- The bullish adam and eve pattern may be the bigger 'cup' part of a cup and handle pattern


What We Believe

Considering all technical factors, we believe that the probability of a bullish breakout is high, interpreting the current move within the descending parallel channel as a consolidation.

Trade Safe.