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Despite yesterday’s decline, there have not been any drastic changes in the technical picture of the main currency pair of the Forex market yet. After some other information, let’s go back to the price charts and analyze them. The situation with the spread of the fourth wave of COVID-19 in the world remains tense. Several countries that bypassed the previous outbreaks, when the increase in the number of infections took place in a sparing mode, now found themselves in the epicenter of infection with the cursed infection. In principle, such a course of events, in the form of another and a quite strong wave of COVID-19, could easily be predicted. I mean the fact that it will cover it in the fall, when all the usual seasonal diseases, such as the usual flu, are aggravated. Vaccination of as many people as possible in individual countries and the world is still considered salvation. We hear about the need to get vaccinated against coronavirus everywhere. However, a significant part of people is afraid to get vaccinated, because they are afraid of various kinds of side effects. Nevertheless, as it became known, the first world vaccine against COVID, which of course was not even suspected at that time, was developed by BioNTech and passed 30 years of research. How is this possible if there was no COVID 30 years ago? I have no idea. Do not believe everything that is written or said. However, I read about it from a trustworthy source. Well, let’s get to today’s business, and first of all about macroeconomic events. Today’s main reports that may affect the price dynamics of the euro/dollar will be data on orders for durable goods, which will be published at 13:30 London time.
During yesterday’s slight decline, the EUR/USD pair fell below the red line of the Ichimoku indicator. I believe that for euro bulls, this is a wake-up call. However, this is far from a verdict. While the support at 1.1525 has not been broken, and the pair has not gone under the serious psychological level of 1.1500, nothing has been lost for the players to increase the rate. However, at the end of the article, the decline continues, albeit very moderate. Nevertheless, I believe that the bears will not miss the opportunity to once again test the strength of the key support zone 1.1525-1.1500.
The assumption made in yesterday’s review that sales should be tried after the rise to the used moving averages was fully confirmed, and those who used this recommendation turned out to be in the black. Right now, the pair has dropped to yesterday’s lows and is trying to rewrite them. If three consecutive hourly candles close below the 1.1585 level, I recommend trying to open short positions on a rollback to this mark. Otherwise, when bullish reversal candles appear above 1.1585, it is already worth considering buying. In my opinion, the most relevant scenario is bearish, which means that sales have priority.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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