by Alex Davies on November 17, 2018

EURUSD Analysis – could the bullish correction trigger a buy signal?

EURUSD recently experienced a decline as it breached the support line on 1.13 establishing new long-term lows and triggering a sell signal. We correspondingly took a bearish stance on the price as well.

EURUSD Analysis - could the bullish correction trigger a buy signal?

While there hasn’t been any change that would lead us to change our outlook for the price movement, the currency pair has gone through a slight bullish correction. Although it wasn’t a large correction and had only 130 pips, it was still successful. The price has gone back above the 1.13, which was a resistance it broke during its decline. The breach of the line proved that 1.13 wasn’t a very strong resistance in the first place. We are still inside the flag pattern which is shown with blue colors and below the downtrend line drawn in red. As a result, the sell signal is still on and unless the price crosses blue resistance, there won’t be any change to that sentiment.

By Alex Davies

Alex Davies is a long-time trader with a background in statistical analysis. Davies has worked as a financial analyst since 2014 and has been writing technical analyses for various publications since 2015. Davies writes on different financial instruments including stocks, cryptocurrencies and currency pairs.

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