Technical Analysis for EURUSD for 20th June 2023
Euro Contracts, Uptrend Remains but Support at $1.0800
Past Performance of EURUSD
Based on the daily chart, euro prices are bullish, reading from last week’s solid performance, but are now lower. Following the rapid expansion on June 14, the cool-off on June 15 means an element of overvaluation. Subsequently, euro prices might contract but remain bullish if prices are inside the June 14 bullish engulfing bar.
EURUSD Technical Analysis
The uptrend remains, and euro buyers are in control, anchored by last week’s gains. The cool-off of June 15 and 19 will likely continue. Notice that prices on June 20 were above the upper BB in the daily chart. This formation suggests that the uptrend is oversold and the currency, at spot rates, is above equilibrium. Subsequently, the euro might track lower, likely towards the $1.0850 zone, for a balance to be struck. Any sharp close above $1.0970 nullifies this preview. However, aggressive traders may look to short on lower time frames targeting $1.0850. Losses below $1.0800 nullify this bullish outlook.
What to Expect from EURUSD
Buyers are confident, but euro prices appear overvalued. As such, traders can look for entries to short with targets at June 14 lows. Even so, the uptrend remains, and this immediate forecast will be void if euro prices surge above $1.0970.
Resistance level to watch: $1.0970
Support level to watch: $1.0800
Disclaimer: Opinions expressed are not investment advice. Do your research.
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