In the overbought territory - EUR/USD

The price has pierced the Bollinger band, as shown in the chart  on a 4 hour time frame and this confirms that the volatility is high. The piercing of the Bollinger band does has a significant importance  as an opportunity to buy or sell. The significance of the piercing of the Bollinger band is even higher  because  this takes place at an important level of support or resistance. Under the circumstances we are still a little away from the minor resistance zone.

The EUR/USD pair is trading above its upward trend line. This confirms that the trend is skewed towards the upside and as long as we remain above this trend line, the bias may remain for further upside move.

The reading for the Bollinger the upper and lower bands are 1.1201 and 1.1069 respectively.

The RSI is trading at 75 which is in the overbought territory and this may push the price lower or trigger a pause for the price action.

How far will EUR/USD fall

As most banks around the world are closed today , there's not enough volume to trade so we should see more ranging /consolidating markets today.

Key support level to watch out for EUR/USD, end of day expiry would be 1.11530. By end of the day this pair should be ranging between 1.11500-1.11850.

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EUR/USD went  higher last week because of the meeting  on Wednesday, but since then, the world’s most widely-traded pair has slowly but surely given back most of those gains. Since last Thursday’s high, rates have been consistently edging lower within a near-term bearish channel, and based on the price action alone, the unit shows no signs of breaking this trend any time soon.

We are asking   how far will EUR/USD fall?  In our view, EUR/USD should logically be trading higher now than it was at the start of the last week. Therefore, we’d favor a bullish breakout and possible move back toward 1.1300 at some point next week   Of course we will  follow economic data. Price is the only thing that pays, so short-term EUR/USD traders may want to consider waiting until the unit has definitively broken the bearish channel one way or another before committing too aggressively.

Slight losses for EUR/USD

The pair trades below 1,12 during the Euro session and  we do not see major events in the Eurozone. Today we have the figures of New Home sales. New Home Sales measures the change in percentage of the new home sales, A new home sale is considered to be any deposit or contract signing either in the year the house was built or the year after it was built. A strong number would indicate a strong housing activity, and therefore a strong economy. Now we witness  a lower than expected number 2 % compared to the forecasted 3,2% . So we can not expect stronger USD as well in short  term . So today was a trading range day with not breakthrough.