The pair moved upward in the side channel on Tuesday. The price also moved up and tested the historical resistance level of 1.1166 presented in a blue dotted line and then rolled back down. On Wednesday, strong calendar news is expected for the euro at 08:30, 09:00 and 10:00 Universal time and for the dollar at 15:30 Universal time.
Trend analysis (Fig. 1).
On Wednesday, the price may begin to move down with the first target 1.1117 which is a pullback level of 38.2% presented in a red dashed line. If this level is reached, you can work on the top with the target 1.1176 which is the upper fractal.
Fig. 1 (daily chart).
Comprehensive analysis:
- Indicator analysis - down;
- Fibonacci levels - up;
- Volumes - down;
- Candlestick analysis - down;
- Trend analysis - up;
- Bollinger Lines - up;
- Weekly schedule - up.
General conclusion:
Wednesday is a downward trend.
An unlikely scenario is possible and that is, from a pullback level of 1.1117 presented in a red dashed line, the price will go down to the lower target 1.1091 which is a pullback level of 50.0% presented in a red dashed line.
The material has been provided by InstaForex Company - www.instaforex.com