What is going on Eur/Usd ? So the price is undergoing a very short-term rebound. This allowed the price to return in the 1.12 area. In fact, after entering short about a month ago and reaching the first target in the area of 1,112 (as indicated in the previous analysis), the price returned again near the previous entry point.
Technically, the trend still remains bearish on the main TFs, with the price still below all the main EMA and key static resistances. To reverse the trend in the very short/short period, the price should break the weekly dynamic resistance identified by EMA20 and passer for the 1,126. To reverse it in the short / medium term, the price should even violate upwards the dynamic resistance identified by the EMA200 and passing through the 1.16.
The technical analysis is strongly supported by the fundamental scenario. During the week Draghi will speak, declaring the monetary policy that the ECB will adopt in the short term. Which should not surprise analysts and investors, who still expect a strongly expansive policy. This could devaluing the euro, which should loss against the other majors. We expect that this downtrend will start again.
So because of what is going on Eur/Usd the first target remains the support area at 1.112; the last target we expect the area located at 1.08.
Check our analysis also on TradingView