The EUR/USD pair breaks below the lower bound of its range of consolidation and could confirm a bearish reversal on Forex.
Yesterday, the Euro Dollar fell sharply on the Forex on the opening of the Forex, marking then a lower 1.1831 to the end of the day.
The support zone of 1.1850/25, which supported EUR/USD since 25 August continued to slow down hair loss at this stage.
However, after a slight rebound during the asian session towards the former support of 1.1860 become resistance, the fall has resumed this morning, with a break of threshold of 1.1825 to the key.
If this ground-breaking technique is confirmed – if the price has not risen quickly to the top of the 1.1825 – we could see a resumption of the bearish correction from the top of 1.2091.
The next target of the downward come to 1.1800, 1.1775, 1.1750, 1.1720, 1.1700, and 1.1680.
Conversely, if it is a false signal, and we climb up to the top of 1.1825, we may see a rebound towards the 1.1850/60 in a first time, and then to 1.1900/1.1920 above.
On the economic calendar, we will be following today on the side of the United States the index Case-Schiller housing prices, new home sales, consumer confidence and a speech by J. Yellen.
Consumer confidence will be the most important statistic to watch today, but it should not significantly impact the Forex today.
The speech of Yellen by the end of the day will also be important, but it could pass unnoticed if the Chair of the Fed does not evoke much the monetary policy.
The pair EUR/USD is currently trading at 1.1822 on the Forex.
Graph EUR/USD H4
See also our charts EUR/USD in real time.
This chart has been realized with the trading platform TradingStation 2 provided by FXCM France.