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19.08.202220:17 Forex Analysis & Reviews: Is EURUSD 0.97 next?

Exchange Rates 19.08.2022 analysis

Red lines - bearish channel

Blue lines- bullish RSI divergence

EURUSD is trading to new short-term lower lows and approaching parity once again. The chart confirms trend remains bearish in the medium and long-term. The short-term was recently changed to bearish with the break below 1.0285. As we mentioned in previous posts, the Ichimoku cloud indicator did not change short-term to bullish and remained bearish despite the bounce above 1.03. We mentioned in our analysis that we still considered this bounce only as a counter trend move and selling opportunity. If EURUSD will reach the blue line where the recent lows are connected, we should expect to see it around 0.98-0.97. If the lower channel boundary is to be reached, then we should expect much lower levels towards 0.90. Despite that, we see a glimpse of hope for bulls by the RSI that has already provided us with a higher low. This bullish divergence is no reversal signal, only a warning as we have said many times before. It is very probable that we will see new lows in EURUSD and the RSI will provide another bullish divergence. As long as price is below 1.0350 medium-term trend remains bearish. It is too early to talk about 0.90, but 0.97-0.98 is very probable to be seen during Autumn.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Alexandros Yfantis,
Analytical expert of InstaForex
© 2007-2022
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