Forex Signals

EURUSD Could Visit the 1.10 Level Again


EURUSD, in its 2-hour chart, illustrates an expanding triangle in progress that began in early April and could develop a limited decline before rallies. 

The current bearish leg in progress shows an aggressive decline supported by an extreme oversold revealed on the RSI oscillator. However, the price action remains its bearish momentum.


For the coming trading sessions, we foresee a consolidation structure, which should move up the RSI oscillator. After this move, the EURUSD should decline modestly, creating a bullish divergence, for then unveiling a bullish divergence.

Likely the NFP data release on Friday could provide the necessary volatility to activate the upward scenario as the result of a false decline.

The buy-side position will activate if the common currency touches and closes above level 1.0782. Our conservative scenario foresees an upside to 1.10 as a psychological level

The bullish scenario will be invalid if EURUSD violates the 1.0636, which corresponds to March 22nd low.


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By Eduardo Vargas

Eduardo Vargas is a technical analyst and independent trader based in Buenos Aires, Argentina. He is an Industrial Engineer and holds a Master in Finance degree. In 2008 began to trade Chilean stocks listed on IPSA. From 2013 started to trade CFDs on Forex, Commodities, Indices and ETFs markets. He analyses different markets combining the Elliott Wave analysis with Fibonacci tools. He provides a market mid-long-term vision.

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