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Will There Be A Correction In EUR/USD?

EUR/USD

Will Euro undergo a correction?

The price was able to gain control yesterday and break above 1.1364 level. On the other side Oil and Gold had a bullish move, which strengthened the CAD and AUD, thus the Euro crosses were limited which indirectly impacted the EUR/USD gains. One of the key strength for Euro came from the negative sentiment posed on the Dollar due to the diminishing forecast of a Fed interest rate hike.

Since the Friday's payroll report, EUR/USD has been trading positive and was ranging within the hourly channel for the last 4 days. But it now appears that the price has punctured the hourly channel after plotting a doji on the hourly chart. This has questioned the bullish leg, but the daily candle continues to hold firmly above the ascending channel. A retracement of this bullish leg can last towards 1.1303 and may range between 1.14 to 1.13.

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