EURUSD declined yesterday following a Bloomberg report saying that some ECB members were considering a slower pace of tightening. This seems premature at this stage and has been pushed back today at Davos.
The EURUSD daily candlesticks are trading in their bullish channel between the upper blue and red bands (green ellipse). The bottom red Bollinger has turned up, synching with the positive direction of the upper red Bollinger band. This is bullish. The longer this channel is maintained, the greater the likelihood of a higher EURUSD.
The hourly chart shows bullish tendencies, too. Its trend-following EMAs and momentum-based stochastic have both crossed up (black ellipses). If the stochastic makes its way to the upper quintile and holds (blue arrow), an underlying bullish momentum will be present on the hourly time frame.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.