EURUSD Defending Parity Like There Is No Tomorrow
20 July 2022
The markets have had enough. Enough of the cheaper stocks and enough of the stronger dollar. A time for correction has now come!
On EURUSD it was played out in a terrific way. The pair was flirting with parity, and for a while the word ‘parity’ became the most popular word in the English language, at least among the finance areas of twitter.
Before reaching higher, the EURUSD managed to clean stop losses which were inside of a 40 pip distance from parity. Once done, the price surged and recorded three bullish days in a row. Today, we’re fighting for a fourth one. The last time the EURUSD had four consecutive bullish days was in the middle of March. So, can we have it in July?
Technical analysis gives us a hint that, yes, it could happen. We still have some space before we get to two major resistances and the EURUSD can make white candles till we will reach them. Those resistances are 1.036 (blue) and the long-term down trendline (red). They should work like a magnet and chances that we’ll reach them are quite high.
What will happen next? Well, that’s the million-dollar question. A breakout of those two resistances would change the positive sentiment from the short-term to a mid-term one. A bounce on the other hand, would be an old-school end of the correction and a comeback to a well-established, long-term bearish trend.