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EURUSD Week 28/2020

5 July 2020, 17:18

ALEXEI DOBRII

182

Last week, the EURUSD was in total passive. Prior to that, there had been a strong upward trek from 14.05-10.06, followed by sawing and a very thin flat for the last week. This calm will serve as a good reinforcement for the bulls. A very good sign for them is that the bears didn't have the strength to squeeze the price down as it happened after a similar shot from 20.02.20 to 9.03.20 when they took it all back and forth. The bulls have held their ground, losing only 39%, and are now gaining strength for a new rise.

From the point of view of models, on the basis of 21.03.20 the price did not cheat and reacted when the time Model B fractalized the Model A in the proportion of 2.33. Since then the price entered the Model C, the ascent of which, given the same proportion should end in late July.

Now, as for Model E. From the beginning of 2018 to today, the price has already built such "forms" on the chart with an accuracy of 80%. In total, there were 3 such events: 2 - in 2018 and one quite recently 8.03.2020. Yes, 2 out of 3 with a negative correlation, which means in an inverted form.

And there is nothing left but to see how the price has behaved these days and to project for the next week.

But the price did not become original, and out of three moves it gave one down, the second sideways and the third up. A score turns out to be a draw.

I give my preference to upward movement, which shows that already on 7.07.20 the price will be at the level of 10.06.20, and by the end of the week it will run until 09.03.20.