The EUR/USD currency pair broke the level of 1.3050, and then tested the area of 1.3170. At the moment the price is testing the descending channel’s broken border, one can consider buying Euro from the current levels. The stop must be placed below 1.3080, the target of the growth is the area of 1.3285. We recommend to increase the amount of long positions only after the price breaks the level of 1.3175. If the pair falls down lower than 1.3050, this case scenario will be cancelled.
After finishing zigzag pattern in wave , the price continues forming an initial impulse in wave (1). Most likely, the pair will continue moving downwards during the week. One of the first targets for the bears is at the level of 0.8000.
The descending trend is supported by the weekly and daily Super Trends’ lines, the price rebounded from them yesterday. We can’t exclude a possibility that the market may start moving downwards again in the nearest future. The target for the bears is the 0/8 level.
GBPUSD, Time Frame Н4 – Tenkan-Sen and Kijun-Sen intersected near the cloud’s lower border forming “Dead Cross” (1), the lines are very close to each other and both directed upwards. Ichimoku Cloud went from the red zone into the blue one (2), Senkou Span A is moving upwards, and Senkou Span B turned downwards. Chinkou Lagging Span is above the chart, the price is above the indicator’s lines. In the near term, we can expect the price to return to Senkou Span B.
The H4 chart of the EUR/USD currency pair shows a bullish correction on the descending trend. Window, which is the closest to the price, is a resistance level. Three Line Break and Heiken Ashi candlestick charts confirm a correction.