The EURUSD daily chart remains under pressure. It trades in its bearish area between the lower red and blue bands. We also note that its stochastic is under 20 and holding (green rectangle). This position denotes a strong downside momentum is present.
The hourly chart on the right is instructive. The EURUSD gapped down on the market open following Gazprom's announcement that it shut off Russia's gas supply to Europe via its Nord Stream 1 pipeline. The EURUSD found support at the S2 pivot.
However, S1 is now the critical level to overcome. To this end, if the EMAs cross bearishly (black ellipse) and the H1 stochastic rolls over and moves below 20 (blue arrow), downside pressure will have re-emerged.
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.