Technical Analysis of the Leading Currency Pair

The current situation of world geopolitics generates great tensions in currencies. The latest events in Israel vis-à-vis the Palestinians, and the positions on both sides, mean that for those who work, invest, trade or hedge currencies, they generate moments of uncertainty when and how to do it.

This currency pair, which is the most important internationally, is currently the most traded, but I repeat, it is the one on which the most hedging is done for many companies, large and medium-sized.

The current situation, if we analyze it technically, implies a possible false movement, at the end of the fall, on the weekly chart, in my opinion.

What awaits us in its price, if I think that its current stop is a possible trap? A possible slight upward movement, and then continue with its downward trend, looking for areas closer to parity between both currencies.

On the weekly chart, we observe how the indicator seems to be approaching areas of 30, which in the short term could soon serve as support, at least temporarily.

We observe the graph with a monthly scale, for long-term coverage, it is very likely that the price will continue in the future, heading towards more bearish prices. The long-term highs are eminently descending and for a serious long-term upward reversal to occur, the price, in my opinion, should make a new low, perhaps ascending, but of strength, to finally build, that minimum ascending guarantees, which I still don’t see.

In the following graph, with a monthly scale, there is a drop in the indicator that accompanies the price, but since it is a monthly graph, what was mentioned before: Possibly we will now see prices rising but later, continuing their downward path.

A return to the origin of new future lows? I’m not ruling anything out, but there’s a lot left for that. We will see if it first manages to approach the latest, relevant minimums or something higher but close and from there, we will do another article on the EURUSD, for the long term.

Regards !

Jesús Sánchez-Bermejo