Sun, Apr 02, 2023 @ 05:57 GMT
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EUR/USD Is Trapped In Megaphone Pattern

Due to latest developments in Syria, Oil and Gold went up understandably, and Equities are having a slight pullback, so all eyes now are on NFP, Average Hourly Earnings and Unemployment data. The NFP report should come out strong as we saw better than expected ADP numbers earlier this week. The USD/JPY has already dropped from POC zone as shown yesterday.

Technically we can see a clear megaphone (aka broadening top) pattern on intraday time frame. The pair has been congested in an extremely tight range, making the range more significant with this pattern. The range is only 63 pips for the last 14 days(!). Within the megaphone pattern we can see a consolidation (green highlight) between D H3 and D L3 levels. Depending on the overall data today we should see higher volatility today in EUR/USD so pay attention to these levels.

1.0658-1.0628 is Major consolidation. Below 1.0628, we might see 1.0613 (D L4) and 1.0588 (D L5). Above 1.0658, 1.0675 and 1.0700 are targets. Overshot to W H3 1.0720 is possible too if the pair spikes above 1.0700.

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