The FX24 from Bloomberg Pro Terminal shows us an interesting dependence that is likely to be maintained today.
The blue rectangle shows the price movement during the Asian session, as yesterday and today we see a downward impulse and short-term consolidation.
If the formation and price movements remain the same as yesterday, we can expect a further rise in the single currency against the USD.
The probability of a deeper adjustment for intraday positioning is low, and if we add to your EUR purchases here, it is appropriate to set the stop loss below the short-term bottom with about 20 pips.
Here’s good to know that the price is close to the diagonal resistance of the D1 chart as a fake breakout is not excluded, and if we look for profits, we either have a target of about 50 pips or move the stop quite aggressively in positive territory.
A new lower bottom during the European session will probably mitigate the downward trend in the most traded forex pair.
Chart: Used with permission of Bloomberg Finance L.P.
Trader Nikolay Georgiev