Is it time for a correction on EUR/USD?

EURUSD now on 4-day lows of 1.1207. Large EURUSD option expiries in play again too – a large chunk at 1.1200. A rumour on the street is that the ECB will tomorrow cut inflation forecasts and hence reduce the expectations for tapering: ECB Said To Cut Inflation Forecasts To Around 1.5% Through 2019. If this plays out tomorrow we can see EUR/USD moving to the 23.6% and maybe 32.8% Fib. level.

EU H4 07.06

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INTEREST RATE decision and the possibilities for GBP/USD and EUR/USD

We are still supporting the up movement on GBP/USD however as there is a strong bearish pattern built on daily chart and the FOMC / interest rate decision coming in this evening, we also consider a drop to around 1.2310 – 1.2280 before the pair starts moving strongly up.

Regarding EUR/USD the view has no changed since yesterday`s analysis. A pullback to around 1.0685 – 1.0705 is expected before the pair starts moving to the downside. The main (first target) at the moment we are looking for is 1.04

 

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More movement to the upside for EURUSD

As expected EUR/USD reached the 1.0645 level. However our today`s view has slightly changed since yesterday. In our opinion there is more space for the pair to move to a zone between 1.0685 – 1.0705 before moving sharply down. We still have in mind 1.04 as a first target after the pull back is finished. london-trader

 

 

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EURUSD – the next move

EUR/USD is in a strong bearish movement at the moment, so all we are looking for is a mirror pullback to around 1.0625 – 45 area before continuation to the downside. The 1.04 is the fist target.market-analysis-london-trader

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Do not take your eyes from the target – EURUSD in focus.

As the Italian referendum on Sunday brought sharp down and up movements, scalpers and those traders with good risk management skills could benefit from the event. Also for swing traders staying on a side was a good solution.

As the EURUSD is above 1.07 we are waiting for the pair to move to around 1.09 level before starting to search for a short entry again.
Nevertheless, before going with any trade it is worth taking into account that on Thursday ECB`s Draghi speaks.

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What the next possible move may be for GBPUSD and EURUSD?

As the Italian referendum will take place over the weekend and the NFP announcement is just in front of us the volatility will increase heavily. For those who do not have any position in the market it seems to be wise to stay flat until Monday. Nevertheless, as scalpers and high risk approach traders can take advantage from the volatility why not to share our point of view.

The GBPUSD pair for instance looks to be ready to go to 1.28 level. As long as the price does not dive below 1.2520 level we support the up trend movement. Even if it does we will be still looking for the next entry level to go long.

EURUSD, on another hand, is in a down trend and consolidates at the moment. The 1.04 level is the target as long as the pair is not flying above 1.07. If it does we will reassess the new short entry level.

For swing and positioning traders it looks as staying on a side until Monday is the best strategy for now.

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Is GBP/USD developing an ascending triangle?

From a 4 hour chart we can see that GBP/USD is developing an ascending triangle. If this is the case then break above 1.2530 should bring a sharp up movement when the target seems to be around 1.27 level.

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EUR/USD – is it the long expected pullback?

As EUR/USD is on an extended down movement from 1.13 we are waiting for a pullback to around 1.07 level before the pairs move further down to 1.04 area.

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NZD/USD and SILVER – medium term direction

Just to explore the possibilities that NZD/USD (a weekly chart) and SILVER (a daily chart) may be close to their turning points.

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