EUR/USD Oversold and Correction Time

By @ibtimes on

CHF

The assumed retracement to the key supports for realization of long positions has not been confirmed, but the expected growth of the rate showed a sign of overbought condition of the pair with further strengthening of bearish activity as a sign of perspective of a deeper correction. Thus, presently, evaluating the situation in favour of sales, and taking into account the descending direction of the indicator chart, we assume a possibility of another retracement to 0,8870/80, where it is recommended to evaluate activity development on the charts with smaller time frame. For short-term sales, on condition of formation of topping signals, the targets will be 0,8830/40, 0,8790/0,8800 and/or further breakout variant up to 0,8750/60, 0,8710/20. Alternative for buyers will be above 0,8930 targeting 0,8960/70, 0,9000/10.

GBP

The planned breakout variant for sales was realized with loss in achievement of the assumed targets. OsMA trend indicator, having marked a drop of activity of both parties, doesn’t introduce any certainty in relation to choice of priorities for today. Thus, according to the chosen strategy with assumptions about perspective of range movement, we assume a possibility of another retracement to Ichimoku cloud boarders at 1,6340/60, where it is recommended to evaluate activity development on the charts with smaller time frame. For short-term sales, on condition of formation of topping signals, the targets will be 1,6280/1,6300, 1,6220/40 and/or further breakout variant up to 1,6160/80, 1,6100/20, 1,6040/60. Alternative for buyers will be above 1,6440 targeting 1,6480/1,6500, 1,6540/60.

JPY

The assumed retracement to the key supports has been confirmed, but relative growth of bearish activity marked by OsMA trend indicator, didn’t dispose to immediate realization of the planned long positions. Nevertheless, presently, taking into account the general drop of parties activity as a sign of perspective of range movement, and the incomplete bearish cycle, we assume a possibility of achievement of Senkou Span B line of Ichimoku indicator at 80,30/40, where it is recommended to evaluate activity development on the charts with smaller time frame. For short-term long positions, on condition of formation of topping signals, the targets will be 80,70/80, 81,10/20 and/or further breakout variant above 81,40 with targets 81,70/80, 82,10/20. Alternative for sales will be below 80,00 targeting 79,60/70, 79,20/30.

EUR

The planed breakout variant for sales was realized with loss in achievement of the assumed targets. OsMA trend indicator, having marked renewal of this month’s lows by formation of a topping bullish signal with further growth of bullish activity, gives grounds to assume further correction with preferable long positions for planning trades for today. Thus, presently, taking into account the descending direction of the indicator chart, we assume a possibility of retracement to supports 1,4200/20, where it is recommended to evaluate activity development on the charts with smaller time frame. For short-term long positions, on condition of formation of topping signals, the targets will be 1,4260/80, 1,4320/40 and/or further breakout variant up to 1,4380/1,4400, 1,4440/60. Alternative for sales will be below 1,4160 targeting 1,4100/20, 1,4040/60, 1,3980/1,4000.

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