EURUSD draws positive formation – Analysis - 10-12-2018

The EURUSD pair begins the week with more rise to test the key resistance 1.1443 now, noticing that the EMA50 continues the negative pressure attempt on the price, while stochastic reaches the overbought areas, which form negative factors that might push the price to decline again.

But on the other hand, when we take a deeper look at the chart, we will notice that the price drew an inverted head and shoulders’ pattern shown on the minor image, which means that the price has a positive motive to rally towards turning to rise on the intraday and short term basis, but it needs to surpass 1.1443 and get rid of the current negative factors to confirm the rise.

Therefore, we prefer staying aside temporarily until we get a clearer signal for the next trend, which we will get through breaching 1.1443 resistance or breaking 1.1400 support, as breaching this resistance will push the price to achieve positive targets that start at 1.1550 and extend to 1.1705, while breaking the support will push the pair towards 1.1300 followed by 1.1181 levels as next main stations.

Expected trading range for today is between 1.1320 support and 1.1530 resistance.

Expected trend for today: Depends on the above mentioned levels