Euro may sag to 1.20 on news

05.06.2021

Daily chart: the euro is actively trading down. In the near future, it is possible to test the lower Bollinger band (1.2075), from where we can expect an upward rebound with a return to the middle band (1.2171). If the support at 1.2075 is broken against the background of today’s news from the US, the pair may sharply sag to the psychological level of 1.2000.

Н4: the local lower Bollinger envelope has not been broken yet, however, strong ADX trend pressure in favor of sellers remains here. Therefore, the probability of a breakdown of support 1.2101 should be interpreted as high.

Н1: also one of the possible scenarios for the day may be consolidation within the Bollinger envelopes (1.2101-1.2148) to 3:30 pm Moscow time, when the US publishes the NFP data and the range is broken.

Conclusions: trading in the range 1.2101-1.2148, then falling to 1.2000.
Trading decisions: selling from the 1.2148 zone to 1.2100 and 1.2000.