Although the macroeconomic calendar is completely empty, this did not prevent the single European currency from continuing its steady movement towards parity. It fell in price by almost two hundred points during the day. Apparently, traders are serious about testing the parity. Let's just say - touch this level. Given that the market has not seen such values since 2002, a rebound will immediately begin upon reaching it. And quite impressive. Most likely even more impressive than the decline over the past day. There is another option - a local rebound will start a little earlier, and we will not see parity. At least today. Overcoming this mark is a somewhat more distant prospect. First, investors need to sort out the pace of interest rate hikes by the European Central Bank and the Federal Reserve.
The EURUSD currency pair, ignoring the oversold signal, continued to decline. This indicates a high interest of speculators in the current market situation.
The RSI H4 and D1 indicator is moving below the level of 30, which indicates an overheating of short positions.
The moving MA lines on the Alligator H4 and D1 indicators are directed downwards, which corresponds to the direction of the main trend.
Expectations and prospects
At the moment, traders are watching a historical event, the quote has come close to parity with the intention of breaking it. Keeping the price below it can lead to a local acceleration of the downward cycle. After that, a sharp change in trading interest is possible, caused by an increase in the volume of long positions, which will provoke a technical rollback in the market. Variable chatter and high volatility will remain in the market indefinitely.
Comprehensive indicator analysis has a sell signal in the short, intraday and medium term due to the intense downward move.