From the daily chart, we can see that the price has been going down for 62 days since May 25th. This was a long and solid downward trip for EURUSD. On Aug 19th, the price met the support, where the price line touched the lower Bollinger Band. Then the price line started to go up. Now, the price line already broke out the upper Bollinger Band and the 38.2 level Fibonacci. What’s next?
Usually, the price bounces back when it touches the Bollinger Bands; but I do not think the price could turn around this time. The Standard deviation is still at a low level, which means the price will remain in the same fluctuation range for a while. Also, the MACD just made a bullish cross. Traders may consider the Stochastics; it is already overbought. However, the overbought situation could last for a while. Let’s see if the price could reach the 61.8% level Fibonacci.
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