In reviewing the EURUSD pair, the 1.08 level stands out as a critical point, with the market having reacted here multiple times. A break above this level could indicate a recovery from oversold conditions, making it a possible entry for a small buy position. However, recent spikes in US interest rates have strengthened the dollar, adding caution to any bullish outlook. Mixed economic signals are also influencing Federal Reserve policy decisions, creating additional uncertainty. Technically, the chart looks choppy, but if price breaks above 1.0850, buying momentum might increase; alternatively, a move below 1.0750 could lead to further declines in the euro.
EURAUD – H4 Timeframe
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The 4-hour timeframe chart of EURAUD presents us a typical SBR pattern following the break below the previous low, right after price swept liquidity from the previous high. At the moment, price is slowly nearing the rally-base-drop supply zone at 88% of the Fibonacci retracement, which could push prices back towards 23% of the Fibonacci.
Analyst’s Expectations:
Direction: Bearish
Target:1.62059
Invalidation:1.66433
EURCAD – H4 Timeframe
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In the case of EURCAD, we have a bit more confluence in favor of the bearish sentiment. Aside from the SBR pattern, there is also a trendline resistance, 88% Fibonacci retracement level, and the rally-base-drop supply zone. As expected, based on the listed confluences, my sentiment will remain bearish until the price breaks above the 100% Fibonacci retracement level.
Analyst’s Expectations:
Direction: Bearish
Target:0.85710
Invalidation:1.51690
CONCLUSION
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