EUR USD trend analysis is the most common of all currency pair analysis because it is the world’s two largest currencies. As a result of the reputation of these currencies, many large organizations make investments in those currencies and are hedging their exchange rate risks. A hedge is an investment to reduce the risk of adverse price movement of an asset.
Considering that they are the largest currency pair in the world, their analysis has a way of affecting other currency pair trend analysis. They are the world’s most liquid currency pair, and many forex traders trade this currency pair despite the fact that it is difficult to find arbitrage opportunities. Arbitrage is to make profit from the differences in the price of identical or similar market security, as a result, some market inefficiency.
Recent EUR USD analysis
For some time now, the latest analysis of this currency pair has been bullish (a market trend where the prices of securities are rising expectantly). In addition to this bullish market trend, the EUR keeps fluctuating around EMA50 , showing positive attempts every now and then.
Traders of this currency pair has been short since the pair traded above $1.10 mark through late July. The Euro remains in a tight trading corner as there are major sentiments calling out for further gain currency pair.
Here is the latest EUR USD currency pair analysis by mt5
As a result of the movement of EUR USD pair in January 2015, which was below major demand levels, a long-term bearish target was projected towards 0.9450. In August 1997, the demand level of 1.0560 was reached. This same demand level was reached again in March 2015, the next monthly demand level around 1.0570. This was followed by a strong bullish recovery later in April 2015, as was observed in the demand level. September, October, and November monthly candlestick shows a strong pessimistic rejection around 1.1400 – 1.1500. There was a significant supply zone in February 2016; a bullish pullback depicted by the price levels. For this reason, the rejection of recent bearish was expected around price levels. If the current monthly candlestick comes to a close below the depicted monthly demand level of 1.0570, then the level is expected to remain a projected bearish target. However, there is a low probability that a monthly candlestick closures above 1.1400 nullify on an intermediate-term basis.