In the previous analysis we mentioned the bearish sentiment on the main pair and indeed we saw a nice drop for almost 100 pips. Unfortunately the sellers had no more power to push the price lower and currently we are seeing a nice retracement.
Is the weak dollar pulling the commodities higher or is the rally on the commodities somehow influencing the surge on the EURUSD?
Usually it goes the first way but recently the main story on the market is the Doha no deal. It first pushed the price of oil lower but now oil is traded much higher. Fundamentals in Europe and US are on the second plan that is why some can assume that the second scenario may be in the game right now. Either way it goes, we can see that the EURUSD came back above the very important support on the 1.1340. This is definitely a bullish sign especially when it happened with absolutely no bearish bounce on the blue area. No upper wick on the candles shows us that the level was accepted and it was not defended.
Bears can still pray that we are just about to draw a right shoulder of the H&S formation but this is more wishing than trading. The most recent scenario for the end of the week is small correction followed by uptrend reaching at least the tops from the 12th of April.
This analysis is provided by Forex News Now, a leading website on FX Broker news.