EURUSD, “Euro vs. US Dollar”
In the H4 chart, EURUSD reached the support at the 0/8 level, rebounded from it, and right not the pair is trading above the 2/8 one. As a rule, when the price rebounds from the 0/8 level, the first target is the resistance at the 3/8 one, which means that the pair is going to test this level and may offer two possible scenarios. The first scenario suggests that the instrument may break the resistance and then continue growing towards the 5/8 level. This scenario is confirmed by yesterday’s growth. The second one implies that the pair may rebound from the resistance and then start a new descending to reach the support at the 1/8 level, which may be considered as a correction of the future uptrend. This scenario is hard to believe in, because most people on the market are expecting the price to continue moving downwards, but one shouldn’t ignore it. However, the “possible uptrend” scenario may be cancelled if the instrument breaks the 1/8 level. In this case, the instrument may continue trading downwards to reach the support at the -1/8 one. .
As we can see in the M15 chart, the pair has broken the upside line of the VoltyChannel indicator and, as a result, may continue the short-term ascending tendency.
GBPUSD, “Great Britain Pound vs US Dollar”
As we can see in the H4 chart, GBPUSD has been falling for almost 20 trading sessions in a row, but it can’t last forever. The chart shows that the pair has reached the “oversold area”, which means that it may reverse or start a significant correction quite soon. Recently, traders have accumulated a lot of short positions and got nice profit, but on the last trading session of the week, they get to choose what to do next. They may risk and hold their positions open for the next week, but in this case, they may lose money if the pair opens with a gap up next Monday. That’s why, logic suggests that they should reduce their short positions and take profit, thus making the price go higher. So, if the price breaks the 0/8 level, it may start a new growth to reach the resistance at the 3/8 one. However, if the instrument breaks the -2/8 level, the bearish tendency will continue dominating and the lines at the chart will be redrawn.
In the M15 chart, the pair may break the upside line of the VoltyChannel indicator and, as a result, resume moving upwards.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.