Potential downside next week for EURUSD

16 giu 2023

The recent 300+ pips surge in EURUSD, devoid of pullbacks [D], raises the possibility of a downward movement in the pair next week. Several factors support this notion, highlighting a potential decline in the EUR/USD exchange rate.

• Overextended Bullish Momentum:
  The absence of retracements in the recent rally suggests a potential overextension of bullish momentum. Profit-taking by traders and investors could trigger a downward pressure on EUR/USD.
  
  
• Technical Resistance Levels:
  EUR/USD has reached significant technical resistance levels, which often act as barriers to further upward movement. This could lead to a reversal as traders react to these levels.
  
  
• Monetary Policy and Economic Data:
  Diverging monetary policies between the ECB and the Fed, coupled with influential economic data, may favor a decline in EUR/USD. A less hawkish ECB or positive data from the US could contribute to this scenario.
  

Considering the overextended bullish momentum, technical resistance levels, monetary policy divergence, and economic data, there is a possibility of a downward correction in the EUR/USD pair next week. Traders should closely monitor these factors and adapt their strategies accordingly.

First target: 1.0835
Second: 1.0775

30 giu 2023

Nota

First target touched to the pip, trade closed due to 4th of July break next week.