Trading slowly enters in a holiday season mode so we might see some illiquid volume. In spite of inflation moving higher and some improvements in the EU zone economy in Q3, the pair is still being sold on rallies so that is the safest route to go. Zig zags are easy to spot as the pair goes with easy to spot lower high, lower low pattern. POC zone (50.0, H3, bearish order block, X cross ™) comes within 1.0505-20 and we could see a rejection within the zone towards 1.0366. Trading within the zone could be possible so we might have some end of day swings. However if 1.0360 is broken with a high momentum (marubozu) or we see a 4h candle close below 1.0360 then 1.0280 is possible.
Daily technical analysis is written by Nenad Kerkez, a senior analyst at Admiral Markets.