The pair EUR/USD has been penalized by the weak performance of equities last week, while the USD has been recovering as investors keep moving away from risky assets.
EUR/USD - 4 hours time frame chart
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appOn the 4 hour time frame chart, we can see that bears managed to break below the lower limit of the structure (Rising Wedge).
As long as the price remains below the structure, the bearish scenario appears to be the most likely. However, it is also important to note that the first short-term support level is determinant for a new bearish momentum - the EMA 50-period.
EUR/USD, 4 hours time frame chart. Source: xStation 5
The dollar index stills showing signs of reversal trend, if the prices breaks above the downside trend line of the chart pattern.
Dollar Index, 4 hours time frame chart. Source: xStation 5
CAD is leading the gains this session.
Heatmap. Source: xStation 5
Henrique Tomé, XTB Portugal
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
