EURUSD: the risk of a downfall is still there
The pair was descending to the mentioned support level on Tuesday as a result of unexpectedly poor manufacturing orders data from Germany – the orders suddenly decreased in July. Moreover, the situation is worsened by the messages from bond fund, which says that Greece is expected to be unable to rid itself of debts in 3 years avoiding restructuring
As the price has obviously fixed below 55 MA, and the question is – what’s next?
A short term scenario would be intraday support at level 1.2745 with the following breach of a dashed line, in case inverse head-and-shoulders scenario fails.
Consolidation within the range until the market moods clear up is the alternative scenario. Head-and-shoulders variant is possible here, as well as “hanging” somewhere in between these two extremities.
Analysis by: Forex4you.com written by Joaquin Monfort
Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.