Yesterday
we identified an ascending triangle on the EUR/USD 4 hour chart, which had a
very good probability of breaking out to the upside. After the release of the
FOMC minutes, the Dollar weakened and we saw how the EUR/USD broke to the
upside of the ascending triangle and it even went above the 1.2700 level. At
the moment the pair is showing a pullback to the same 1.2700 level and this
area could become a good support. It is possible to see a bounce from this zone
to the upside; therefore, we must be attentive to a possible continuation of
the bullish momentum of the pair from this area.
This pullback could've been just a small correction and it might start falling again.
ReplyDeleteThe fragility of the economic recovery in the Euro Zone is feeding the bleeding of the pair.
ReplyDeleteThe break above 1.2700 brought a short squeeze to the 1.2780-1.2820 price region, with resistance at 1.2790 eventually bringing about heavy selling and profit taking to bring the exchange rate back below 1.27. With the pair in its third day above its 10-day moving average we expect short term bullish correction to continue (despite long-term downtrend and bearish fundamental environment) and will look to set a long on a drop back down to the 10-day.
ReplyDeleteWell spotted! I’ll be even more careful.
ReplyDeletegood post, thank you.
ReplyDeletelet's see how the market will start this week
ReplyDeleteThank you for this post. Very Helpful.
ReplyDeleteIs it just a correction movement or...?
ReplyDelete