EURUSD → The market is waiting for news. Bearish "Flag" ↘︎

1 Nov 2023

So, EURUSD and DXY are inversely correlated with each other. The market has been in consolidation for quite a long time, apparently waiting for the news



There are a lot of reports being published today. The chart on the left shows positive (green), negative (red) and neutral (gray) news for the dollar. In all likelihood, if the final data is close to what is expected, the market could form quite a strong momentum. If the dollar will strengthen on the background of bullish news, the currency pair we are interested in will break the support of the pattern "flag", which will activate it and the market will continue its falling trend.

With neutral or negative news for the dollar, the price will bounce off the resistance and head downward, which will affect the forex market accordingly. But even in this case there is a high probability of getting a false breakout relative to one or another support or resistance. It is also worth noting the SMA cross.

Support levels: channel line, 1.0523, 1.0488
Resistance levels: 1.0632

Based on the expected news, I expect a breakout of support and realization of the "flag" pattern. But with unstable data and very different from predicted, the market may form a rebound, false breakout or other trap format

Regards R. Linda!