The EUR/USD is currently in a strong sideways phase. The range is between 1.1273 and 1.1307. Traders are eagerly awaiting the breakout, but if there is no volatility in the market, it is very difficult for the price to break out. Although the indicators have long been exhausted and the stochastic is leaving the extreme range again. However, relatively little happens in the market. Since today is one of the most important holidays in the USA. We also expect quite calm markets in the American session. The stock markets in America will remain closed and there will be celebrations and no trading today. President Trump has promised the people to present the biggest fireworks spectacle in history.
Will EUR/USD make the breakout?
From a technical point of view, however, our currency pair is on the verge of breaking out. Energy has accumulated in the market and traders are becoming increasingly impatient. We expect the break-out on the upside as support is very strong at 1.1273 and in the long term the market is oversold. But for the euro to continue on its upward path, it must first conquer the big hurdle of 1.1305. Here the significant resistance runs (MA420, the pink line). The “big figure” at 1.1300 also represents an important psychological limit. The first price target is 1.1353 and then 1.1388. In this area the price encounters technical resistance. Should it unexpectedly come to a short movement: The next support is, as already mentioned, at 1.1273. As long as this support does not break, we see the EUR/USD bullish, and we could position ourselves long. Whether the breakout will take place before the weekend remains unclear. Because also tomorrow, shortly before the weekend, many Americans will enjoy a bridging day.
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