TECHNICAL DAILY OUTLOOK – EURUSD 22nd of April
EYES ON 1.0795
NEWS THAT CAN HAVE AN IMPACT:
– USA EXISTING HOME SALES (15:00 GMT)
As I wrote on Yesterday Outlook, no more attempts to hit 1.0795 would lead to a bearish bias consolidating around 1.069 – 1.066 area, very important supports; a reaction over 1.069 can be moderately bullish or even strongly bullish. If a break out of the 1.0795 level is followed, then the new bullish momentum would encourage bulls to cover the 1.091 gap.
The view was very accurate as EUR/USD have been laying upon 1.069 level for all yesterday’s London session. Then this level reacted and bulls pushed prices up to 1.078.
So today eyes on 1.0795 (7-days high).
The possible scenarios (depending on the news outcomes) are 2:
– bullish breakout of 1.0795 level (also thanks to a lower-than-expected set of numbers from USA Bureau of statistics) will lead straight to 1.085
– bearish breakout of 1.069 level (also thanks to a higher-than-expected set of numbers from USA Bureau of statistics) will make EUR/USD fall into 1.064, first, and eventually 1.058, then.
Author: Simone Ambrogio
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