- Euro target of $1,104 set on June 15th achieved as 6E rallied 3.6% from recent low.
- Declining volume, well below average, indicates a pause in the rally at resistance zone.
- Sideways movement with low volume would favor bulls, increasing the likelihood of a push above $1.11 while maintaining support above $1.089.
Recap
On June 15th, we set our target for the Euro for a price of $1,104. This target was hit last Thursday as 6E rallied 3.6% from its recent low. The question is whether we see a higher chance this resistance zone will be broken to the upside or if the bears will push 6E down once more.
Moving forward
The volume has been declining since the big spike we saw on June 13th, well below the average, signaled by the black line on the chart below. The pause in the rally as price reached the resistance zone is not something bulls should be concerned with at the moment since the rally that happened prior was a steep and powerful one. A small pause is normal.
If we see price sit sideways for a few days with volume remaining low, this is a good sign for bulls, and a push above $1.11 is more likely than not. Bulls want to see price remain above $1.089.
Summary
Bulls remain in control at the moment. The decrease in volume tells us that sideways movement is likely to continue for a few more days before the market decides whether it wants to head higher or lower.
