As we can see now, the bulls are trying to take over the initiative in the market of EURUSD.
After the downtrend started n Friday at 1.3432 and continuing down to 1.3382, the low of the day, the common European currency is currently trying to regain the lost ground against the US Dollar. In particular, the price is trying to consolidate over 1.3390. The volatility is relatively low since there are now major economic news releases scheduled for today.
Last week's geopolitical risks were pretty escalated, thereby increasing the volatility in many financial markets. Traders went alive, thereby pushing the 10-year US bond yield closer to 13-months lows. At the same time, the 10-year German bond yield declined as well – slightly above 1%. This is also closed to a record low.
EURUSD Prospects
Masterforex-V Academy conducted comprehensive analysis of the H1 chart of EURUSD to find out the near-term prospects of the currency pair. The situation in the chart has seen no major changes so far. As mentioned above, the currency pair is subject to low volatility. The price is still consolidating within the scope of the 1.3382 и 1.3432 range. These are today's low and last week's high respectively.
The current bearish tendency has slowed down bit as the price is trying to unfold a bullish reaction from 1.3332. The bullish count includes 3 competed waves at this point (marked pink).
The mentioned recovery is still viewed as a reaction, not a reversal. The following levels of support and resistance should get special attention today.
Resistance: 1.3428 + 1.3432 +1.3440;
Support: 1.3366 + the MF sloping channel (marked green)
