The EUR/USD is a way to measure how many US dollars are worth one Euro. Right now, the Euro is doing well and people think it will keep going up against the dollar. There's a special chart that shows how this pair of money changes over time. The chart has different parts like hours, days, weeks, and months. In this case, we are looking at hours and days.
On the big picture (weeks and months), the Euro is going up and down, but right now it's staying around a certain point, which is 1.0831. This is like saying you have a toy car that can go faster or slower, but for now, it's not moving much. If the toy car goes faster (Euro goes up) and breaks through a line at 1.0900, then it might slow down again and go back to 1.0831. But if that happens, there's another line where the toy car could stop at 1.0680.
On the smaller picture (days), the Euro is also going up and down, but right now it's staying around a different point, which is 1.0831. This is like saying you have a different toy car that can go faster or slower, but for now, it's not moving much either. If this toy car goes faster (Euro goes up) and breaks through a line at 1.0870, then it might slow down again and go back to 1.0831. But if that happens, there's another line where the toy car could stop at 1.0866.
The EUR/USD is like two toy cars racing against each other. Right now, people think the Euro car is doing better than the US dollar car. A special tool called a MACD indicator shows that the Euro car might keep going faster for a little longer.
Read from source...
- The title is misleading and sensationalized, as the EUR/USD pair does not show strength in general, but rather in specific time frames and scenarios.
- The author uses vague terms like "anticipation of key events" without explaining what these events are or how they affect the currency pair. This creates a sense of uncertainty and confusion for the readers who might be interested in trading or investing in this pair.
- The technical analysis section is poorly written and lacks clarity, coherence, and logic. For example, it contradicts itself by saying that an upward break from the consolidation could signal the start of a growth wave, but also that the current growth phase is anticipated to end soon and give way to a new downtrend. It also does not provide any evidence or reasoning for why the MACD indicator supports this outlook, or what it measures and how it relates to the currency pair's performance.
- The author uses emotional language and exaggeration, such as "a sharply rising histogram", which implies a strong and positive momentum, but does not explain what this means in terms of actual price movements or profitability for traders or investors. This creates an impression that the article is biased and unreliable.
The EUR/USD pair is showing strength amid anticipation of key events, such as the FOMC meeting and ECB rate cut decision. Based on the technical analysis, there are several possible scenarios for this currency pair in the short term. Here are my recommended trades and their respective risks:
Trade 1: Long EUR/USD from H4 consolidation around 1.0831 level with a take-profit at 1.0900 or the end of the growth wave. The risk is that the downward correction may not materialize and the pair could break below the support level, resulting in losses.
Trade 2: Short EUR/USD from H1 consolidation around 1.0831 level with a take-profit at 1.0680 or the start of a new downtrend. The risk is that the growth wave may continue beyond the initial target and the pair could reach higher levels, resulting in losses.
Trade 3: Long EUR/USD from H1 growth structure around 1.0870 level with a take-profit at 1.0866 or the correction back to the support level. The risk is that the growth phase may not be concluded and the pair could continue higher, resulting in losses.
Note: These trades are based on the assumption that the technical analysis is accurate and the key events do not deviate significantly from the expected outcomes. There are always uncertainties and risks involved in trading Forex, and these recommendations are not guaranteed to be profitable. It is advisable to use risk management strategies, such as stop-loss orders and position sizing, to minimize potential losses.