(18/07) EUR/USD Analysis and Prediction

(18/07) EUR/USD Analysis and Prediction

Analysis 

Following yesterday’s analysis and forecast, the currency pair had continued to significantly strengthen throughout various times in the day. An early 02:00 spike in the market had confirmed and strengthened the upward trend of the market, with very little retaliation after that. Two more similar spikes had occurred at 10:00 and 14:00 and were surrounded by significantly smaller candles.  

However, following the latter of the spikes, there has been a downward trend since, of low volatility which may indicate the presence of an opportunity for a sell trade, if the crossover strategy is being implemented. Click here to see my article explaining that successful trading system.   

The graph above illustrates the trend of the EUR/USD over the last few days, with the final quarter indicating the movement that occurred today.  

Forecast 

I strongly believe that over the next 24 hours, an opportunity will arise to enter a position to go SHORT (sell). If the indicators, such as the RSI, agree with the general movement of the two EMAs; EMA(5) and EMA(10), then there is a strong opportunity for profit to be made.  

Looking at the graph above, a chance may occur within the next few hours, with the position holding for a generous amount of time tomorrow. Following the crossover system that I had explained here, a take-profit of 20 pips can also be secured, dependant on the structure of the graph.  

Disclaimer: The forecast above is of my opinion and should not be used as a firm indicator to act on the market, but as an insight and thorough analysis of the general movement and trend of the currency pair discussed above.