Possible “Throwback” On EURUSD
The EURUSD pair or the ‘fiber’ as what they call it in the street has moved outside of its resistance 1.3175. Although as of late, the pair appears to have softened a bit, causing it to correct back to the mentioned level. The question now is, “Will the EURUSD bounce off of its former resistance at 1.3175? A switch of role to a support would send it higher perhaps to around 1.3250. A presence of a hidden bullish divergence or a positive reversal where the price makes higher lows while its stochastics draw lower lows also points to a possible bounce soon. On the negative side, a fall below 1.3175 may send the pair down 1.3125. Still, the bias remains on the upside as demand for the euro appears to have been increasing as suggested by its recent uptrend.
No major economic news are due from the US tonight. Given this, the pair’s price action may just be dictated by its technicals.
