EURUSD is in an upward price channel, but at the same time, the price is forming preconditions, which can change this trend. What to expect from the price?
Why an "up" scenario is possible:
Price is in an uptrend while the dollar index is about to form a retest of support. If the Dollar falls, the EURUSD will make new highs accordingly. In that case, we can expect a breakout at 1.09830 and an increase to 1.107.
Why a downside scenario is possible:
The price reacts weakly to the support of the uptrend channel and forms numerous retests. Decreasing volatility and the formation of a pre-breakdown consolidation is a signal for a possible break-down.
Strong support: lower border of the channel, level 1.09267
Strong resistance: 1.09830, 1.10752
Since the trend is ascending, my priority is waiting for the growth from the channel support, followed by a breakthrough of the resistance at 1.09830
But, if the price breaks the channel support, in this case it might fall to 1.0850
Why an "up" scenario is possible:
Price is in an uptrend while the dollar index is about to form a retest of support. If the Dollar falls, the EURUSD will make new highs accordingly. In that case, we can expect a breakout at 1.09830 and an increase to 1.107.
Why a downside scenario is possible:
The price reacts weakly to the support of the uptrend channel and forms numerous retests. Decreasing volatility and the formation of a pre-breakdown consolidation is a signal for a possible break-down.
Strong support: lower border of the channel, level 1.09267
Strong resistance: 1.09830, 1.10752
Since the trend is ascending, my priority is waiting for the growth from the channel support, followed by a breakthrough of the resistance at 1.09830
But, if the price breaks the channel support, in this case it might fall to 1.0850