the daily chartist

EUR/USD recap for 05.02.2016

published 5 years ago

The story for the euro is same as gold and any other pair against the dollar. On the news the euro actually dropped - dead with 48 pips directly, bulls searched for some rebound at the 1.11396 level but were beaten and eur/usd reached 1.11125 quickly after that. Not as much of a dramatic gain for the dollar overall, compared to its losses on Wednesday, but still this could indicate a returning dollar strength. Flag formation on the M15 indicates for a brake-out bellow, but price stopped at 1.11525 near the upper line, so we may see a brake-out to the top side. The pair maybe reached its peak for now and the dollar is oversold so a correction towards 1.09807 is quite possible, after passing trough 1.10000. Wait for the brake-out direction on the M15 and watch for sentiment and fundamentals for the next week.