{"id":12274,"date":"2021-07-22T07:38:00","date_gmt":"2021-07-22T06:38:00","guid":{"rendered":"https:\/\/youtrading.com\/en\/?p=12274"},"modified":"2021-07-22T16:47:30","modified_gmt":"2021-07-22T15:47:30","slug":"eurusd-technical-analysis-reversal-signal","status":"publish","type":"post","link":"https:\/\/youtrading.com\/en\/eurusd-technical-analysis-reversal-signal\/","title":{"rendered":"EURUSD Technical Analysis – Reversal Signal"},"content":{"rendered":"\t\t
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The euro currency is trading towards the bottom of its yearly trading range against the US dollar as fears over the COVID-19 Delta variant has caused risk-on trades, such as buy EURUSD<\/a>, to suffer.<\/p>

EURUSD traders have all to play for as the pair is starting to show technical signs that a major reversal could be imminent ahead of the European Central Bank interest rate decision and policy decision.<\/p>

The trouble that EURUSD bulls face is that the US dollar is likely to be increasingly in demand as long as COVID-19 and new lockdown fears remain high. Previous price behaviour has taught us that the greenback is investors choice during times of extreme risk-off sentiment.<\/p>

In the near-term, the EURUSD is showing signs that a bounce could happen at anytime as both the MACD and Momentum indicators have formed significant amounts of bullish price divergence.<\/p>

In terms of current sentiment, the ActivTrader market sentiment tool shows that bullish sentiment has increased dropped since last week. This is a good sign. The decrease is quite large, with a drop of 20 percent taking place.<\/p>

The ActivTrader market sentiment tool shows that bullish sentiment is now at 60 percent. I expect more EURUSD weakness in the near-term until the herd starts to actually turn bearish.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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EURUSD Short-Term Technical Analysis<\/strong><\/p>

The EURUSD pair looks to be forming a large falling wedge pattern has formed during the recent price decline. Falling wedges are typically extremely bullish reversal patterns.<\/p>

If we see the EURUSD pair making a break above the 1.1845 level then a powerful reversal may begin. Bullish MACD and Momentum price divergence is also in play now.<\/p>

To the downside, a break under the 1.1750 level could see the EURUSD pair testing the 1.1705 or 1.1600 levels. I currently favour the bullish scenario rather than the bearish scenario.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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See real-time quotes<\/a> provided by our partner.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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EURUSD Medium-Term Technical Analysis<\/strong><\/p>

Looking at the daily time frame the yearly low is found around the 1.1705 level, meaning that bulls need to defend this area to form a notable double bottom pattern.<\/p>

Should we see the 1.1705 level broken, I fully expect a major price decline towards the 1.1600 level. Make no mistake, this is a make-or-break time for the EURUSD pair.<\/p>

It is noteworthy that the EURUSD pair\u2019s 200-day moving average is found around the 1.2050 level. If the EURUSD pair turns technically bullish again I would expect a test towards the current yearly high.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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See real-time quotes<\/a> provided by our partner.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

The euro currency is trading towards the bottom of its yearly trading range against the US dollar as fears over the COVID-19 Delta variant has caused risk-on trades, such as buy EURUSD, to suffer. EURUSD traders have all to play for as the pair is starting to show technical signs that a major reversal could […]<\/p>\n","protected":false},"author":4,"featured_media":12275,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[496,54,18],"yoast_head":"\nEURUSD Technical Analysis - Reversal Signal - Youtrading UK<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/youtrading.com\/en\/eurusd-technical-analysis-reversal-signal\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"EURUSD Technical Analysis - Reversal Signal\" \/>\n<meta property=\"og:description\" content=\"The euro currency is trading towards the bottom of its yearly trading range against the US dollar as fears over the COVID-19 Delta variant has caused risk-on trades, such as buy EURUSD, to suffer. 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