EUR/USD. The Dollar Will Attempt to Respond to the Euro. | 05 August 2024
05 August 2024, EUR/USD
The last trading day of the past week was very active for this currency pair. The euro significantly appreciated against the dollar, covering the distance that the correction took two weeks to travel, all in one day.
This surge in buying activity might be due to the beginning of wave 3 in an upward impulse. However, it often happens that a strong movement is followed by a reversal, where the price either quickly falls back to the starting point or does so gradually.
This should be kept in mind. For now, previously opened long positions should be at least partially closed. There is a high probability of a reaction from the sellers in the near future, which could lead to significant pressure on the price that the buyers might not withstand.
Investment idea: flat.
The author's opinion reflects their personal view and is not an investment recommendation. The company is not responsible for any trading results based on the provided analytical data.
