On Thursday the euro/dollar closed slightly up. Taking into account that many currencies were down against the USD, the euro helped strengthen the euro/pound and the euro/yen. The euro couldn’t be budged on the American stats. Some believe that the strengthening against the pound was caused by the Bundesbank which has been buying euros for pounds at the end of the month.
The daily candle closed with an upward shade of 64 points. It is 5.3 times bigger than the body. A spike has formed on the hourly and an inverted hammer has formed on the daily. The candle is inverted, so I expect the euro to drop from 1.0452 to 1.0413. As the holidays approach there will be low liquidity and so we need to bear in mind that there will be big movements on either side for no reason whatsoever.
Day’s News (GMT+3):
Euro/ rate on the hourly. Source: TradingView dollar
Intraday forecast: minimum: 1.0412, maximum: 1.0454, close: 1.0428.
Due to a spike in volatility for the euro/yen and euro/pound, the euro/dollar has jumped to 1.0499. Since the market is a thin one, if there is a turnaround, then the price will return to 1.0432.
The euro has been in a sideways above the trend line for 10 hours. Taking the daily candle with the long shade into account, I expect the euro to fall from 1.0454 to 1.0412. In an ideal world we would see it fall to 90 degrees at 1.0397.
Today I built an ellipsis to show the limits for the price fluctuations. The price should reach the 112th degree without leaving the ellipsis. A break in the right-hand side of the ellipsis will cancel any fall for the euro. It’s not worth expecting a rise above 1.0461. Keep an eye on the crosses before entering into a short. If the crosses rise, don’t sell euro.