(20/07) EUR/USD Analysis and Forecast

(20/07) EUR/USD Analysis and Forecast

Analysis 

Following yesterdays analysis and forecast, which can be found here, it had indicated a slow day with an overall negative trend. However, my forecast proved to be correct as you can see by the chart below. A massive retaliation to the recent trend saw the market raise almost 200 points between the lowest and highest points. The overall strength of the EUR has significantly improved due to this. 

If the crossover system was implemented today when the EMA's had crossed (more information can be found here), there was a golden opportunity to secure a lot of profit at 13:00 and 15:00. 

(Image source: IG Index, IG Group)

The graph above indicates the overall trend over the last few days and as evident, today was by far the most volatile of them all.

(Image source: IG Index, IG Group)

This second graph is a magnified version of the previous, with a more focused view of the general movement and volatility that was experienced throughout the day. Earlier on in the day, there were consequent candles of low movement, however heading into the afternoon, the general shape and forecast of the market had completely altered.

Forecast

After the heavy rise in the strength of the Euro today, it is difficult to predict how the trend over the next few days will be. However, the next few hours should see candles of low movement, within the boundaries 11620 and 11640.

Following from the crossover system, the EMAs may dip slightly, which may indicate a potential sell position, which may bring in a small yet secure profit of roughly 10-20 pips. Of course, this position would only be taken in correspondence with the movement of the RSI indicator.

Disclaimer: The forecast above is of my opinion and should not be used as a firm indicator to act on the market, but as an insight and thorough analysis of the general movement and trend of the currency pair discussed above.