Analysis

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EURUSD
Feb 8, 2021, 11:26 AM GMT
#Forex

Waiting for EURUSD's Bullish Pullback to be Completed

The EURUSD started developing a new major downtrend recently, as per our earlier projections. By the end of last week, however, the price corrected some of the losses by retracing up north. Seeing as to how the underlying price action still appears to be entailing ostensibly bearish bias, this could create some interesting trading opportunities.

This week looks poised to be quite uneventful due to the fact that there are only a few economic releases scheduled to occur over the next five days, which implies a likely subdued price action for all major pairs. This assertion stems from the expectations for low trading activity because of the lack of potentially significant market drivers this week, resulting in low liquidity levels.

This environment is unlikely to incite any significant changes to the underlying direction of major assets such as the EURUSD, which is why last week's bullish pullback is not expected to transition into a new uptrend. In other words, the development of the aforementioned downtrend is likely to be continued this week. Hence, traders could look for an opportunity to use trend-continuation strategies on the expectations for further probing of the pair down south.

Profit & Loss
Short Term Long Term Net % Gains
+ - + -
0
0 166 PIPS
29 PIPS
1.13%
Short Term
+ -
0
0
Long Term
+ -
166 PIPS
29 PIPS
Net % Gains
1.13%

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