BNP Paribas updated their forecast related to the EUR/USD price movement in long-term situation - they told the following: "we are somewhat sceptical on the EURUSD’s ability to test and break the previous 2015 low of around 1.0460." Well ... let's evaluate this forecasting situation with technical point of view.
Weekly price is on bearish market condition for the crossing key support level at 1.0704 from above to below for the bearish trend to be continuing. This is bearish breakdown which is going on for right now: Chinkou Span line crossed the price to below for the bearish breakdown to be continuing. And the nearest bearish target is 1.0461. So, there are 2 scenarios concerning the price movement in long-term situation:
- the price is ranging within 1.0461 support and 1.1713 resistance levels, or
- the price is breaking 1.0461 support level from above to below on the close bar for example.
The price is breaking S2 YR1 Pivot at 1.0672 from above to below with 1.0461 as the next target. And there are two similar scenarios for the price movement related to Pivot Points:
- the price is ranging within 1.0461 support and S1 Pivot at 1.1337, or
- the price is breaking S2 Pivot at 1.0672 from above to below on the close bar.
The Strategy: watch the price to break 1.0672with possible sell trade with 1.0461 as a target.
|Instrument||S2 Pivot ||S1 Pivot||Yearly PP||R1 Pivot|