The Euro
versus the Yen has not been able to break above the 137.00 level, but after the
price broke above the 200 period exponential moving average on the 4 hour
chart, around the 136.00 level, we can see that it is trying to retrace back to
that same zone. It is possible that a breakout and pullback pattern gets
completed, and if such event happens, then the price may return to the upside.
A good example of a breakout and pullback pattern can be seen a few days back
around the 135.00 level, where the price clearly breaks above the 135.00 to
pull back to it and continue going higher. The bullish trend is still in place,
even though the Stochastics are pointing to the downside, due to the
retracement that the price is making at the moment.
The euro rose to the highest level this year against major pairs.
ReplyDeleteI agree, bullish trend is still in place.
ReplyDeleteThe trend seems to be losing strength, due to a bearish divergence.
ReplyDeleteGood point! I'll keep an eye on it.
ReplyDeleteThe pair is still testing the support at 136.50.
ReplyDeleteNicely spotted, thank you.
ReplyDeleteI fully agree with your assessment!
ReplyDeleteImportant note.
ReplyDeleteGreat assessment, very useful.
ReplyDelete