FX.co ★ Brief trading recommendations for EUR/USD on 08/31/20

The EUR/USD currency pair confirmed the buyers' intention to maintain an upward mood, during which the 85-hour range of 1.1780/1.1850 was broken through, and the quote headed towards line no. 4 (1.1900/1.1930), the main side channel.

The logical basis of the past relative to the channel 1.1700 // 1.1810 // 1.1900 (1.1930), (lines No. 6, 5 and 4), still works, which is confirmed by the slowdown in activity within the upper border of the flat.

Based on the obtained data on finding the quote relative to the side channel, we can consider several scenarios for market development:

First, a price rebound from line No. 4.

In this situation, the logical basis of the past is considered regarding the successive price rebounds from line No. 4 (area 1.1900/1.1930). If the pattern repeats, the price is expected to decline towards 1.1850-1.1800.

Second, the breakdown of the sideways channel.

In this case, the development of the market is considered a drastic change in terms of the breakdown of the side channel 1.1700 // 1.1810 // 1.1900 (1.1930), upward direction. To confirm this scenario, the quote must consolidate above the local high (1.1965) of August 18.