Jerome Powell’s speech about the Fed altering the balance sheet reduction in case the need arises caused the US Dollar to drop market wide despite release of the great employment data. So, the price of EUR/USD bounced up forming a fine pullback from the broken monthly trendline that is very much resembling a downtrend or a flag. Single currency can potentially reach the level of 1.2555:

In the daily chart, the asset’s price pulled back from the level of 1.1300 while remaining at it for quite some time now. Forming the pattern, resembling something like either reverse head and shoulders with a long right shoulder or a symmetrical triangle, the asset’s price seems to have jumped up.

Relying on recently formed uptrend, we can assume that the asset can pull back down from its upper side just to head up. It can also break the trendline of uptrend and head up. The price of asset may eventually reach the level of 1.1815:

The price of the Canadian currency got back to the resistance zone formed between the levels 1.3375-1.3386, shaping a bullish trap. Once the asset’s price gets back to the resistance zone, it can pull back down:

Share this post: