EURUSD is trading above 1.18000 and breaking above 1.18200. The pair can be seen now struggling against the 23.6 Fibb level after reversing the losses made at 1.17800 area which was Aprils low. The ECB called on shifting to a symmetric inflation target of 2% rather than aiming to cap price rises at that level. 

EURUSD is entering oversold conditions on the four-hour chart. The Relative Strength Index is flirting with the 30 level, and this indicated that upward correction is in process. It is essential to note that the RSI dipped even further in mid-June and stayed there for some time. The rebound took more time to materialize.

 The ECB's special announcement in regards to monetory policy can provide a further upswing to EURUSD. We have EMA 50 and 200 supporting our stance for the currency pair to retrieve itself towards 1.18730 on H4 time frame and further if the upper trend line and resistance is broken - will provide a thrust towards 1.19400 where the pair would be seen flirting with its EMA 200. 50 Fibb level is also indicating that EURUSD will provide a bullish corrective structure after complex deep correction in daily and weekly time frames which has ended on a short note until the above mentioned resistances are met.

 1.12000 should be considered as a major resistance and point of bearish reversal once the EURUSD is witnessed within that zone.

Breakout below 1.17800 should be considered as a bearish continuation targeting lows from March, i.e 1.17000 which again will provide us better levels for understanding if its a bearish trend continuation or is it  just a further deeper correction, if the deeper correction becomes the case, we should be focusing more on finding selling positions rather than buying - for the structure formation would be altered and we would have to wait for the structure to complete. 1.16110 will be the final destination for EURUSD to print its bearish mark and provide a strong retracement.  

EURUSD Hawkish Sentiments

Jul 08 2021

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