EUR/USD technical analysis; expanding formation above the bottom of market, should we wait till lows get retested

Technical analysis of EUR/USD on 16.07.2021

EUR/USD has been feeding for a month to reverse from 1.17000 minimum. At the same time, as time is passing, the fluctuation range expands, and the price may show strong surges, which could cause stop-outs. On the other hand, dollar may temporarily be under pressure from the growth of the stock market, but if the stock indexes continue to decline, dollar continues to grow, then in the medium term, the euro may fall further.

Technical analysis of EUR/USD 16.07.2021: H1

Based on the picture of the hourly chart, quotes approached the local minimum, but impulsiveness of this movement makes us think about the likelihood of a temporary slowdown of next decline. In this case, short-term purchases will be in priority only after price’s strengthening above 1.18000 mark. Otherwise, after the completion of the estimated correction in the near future, quotes may fall to the 1.1740-1.1720 levels.

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Technical analysis of EUR/USD 16.07.2021: H4

On the larger chart of the 4-hour time frame, we observe the continuation of a moderate decline along the upper border of the channel, which indicates the likelihood of decline continuation in the medium term. But the current picture of 1.176000 level’s impulsive retest support may be accompanied by a slowdown of the decline for a while. Accordingly, even with the next price decline below 1.176000, there is a likelihood of the subsequent slowdown of the decline. Especially if the next decline is carried out with one impulse.

This analytics must not be treated as direct trading recommendation. Analysis is for informative purposes only.

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