The eurdollar is at a fundamental juncture, at least in the short term.
Zone 1.1780 represents a very important resistance band for 3 reasons:
– transit area of the upper part of the bearish channel drawn by the August highs
– 50 days moving average transit air (purple)
– pullback on the neckline of the head and shoulders broke down on September 22, 2020.
What can happen in the next sessions?
It is not excluded that the current short-term reaction may leave the possibility of new push-down towards the minimum target defined on September 22nd with the completion of the bearish head and shoulders (100% pattern width extension to 1,1500).
In the medium and long term we remain positive towards an appreciation of the Euro currency against the U.S. currency.