Euro at the threshold of correction

The pair EUR/USD is already traded the seventh day in a sideways trend, limiting itself to the trading range from 1.2200 to 1.2300. This limited dynamics of the pair is caused by overbought and upper bound of the rising channel, which will limit the further growth of the pair. Concerning the euro, overbought is also traced in cross-rates, which confirms the limited growth in the short term.

In this case, the safety of the upward trend for the euro has not yet been questioned. Questions cause correction, which will be limited to a lateral trend or the formation of a downward movement. So, the main support is: 12200 and 1.2170, fixation of the price below them will indicate the formation of the descending correction movement. The possible downtrend will be limited to the support levels: 1.2100-1.2080 and 1.2000-1.1980. From these levels it is possible both to repel and break through. The latter will call into question the safety of the three-month uptrend.

Fig. EUR/USD H4. The current price is 1.2260.

Hanzenko Anton