Weekly Review on Medium Term for EUR/USD

alroughani

عضو نشط
التسجيل
19 أكتوبر 2005
المشاركات
360
الإقامة
Vancouver

The medium term is bullish since EUR/USD broke above falling trend line from 1.3483 to 1.2587, with bullish convergence displaying in daily MACD and RSI, plus daily MACD's breaking above it's own falling trend line as displayed in the daily chart.


EUR/USD basically engaged in consolidation last week, dipped to 1.2005, below 38.2% retracement of 1.1776 to 1.2179 at 1.2025 but failed to stay firm below. As downside is contained well above 1.1930 cluster support (with 61.8% retracement of 1.1776 to 1.2179 at 1.1930 too), medium term bullishness remains.



Friday's late buying suggest the consolidation from 1.2179 has ended with three waves down to 1.2005. Hence, we'd expect EUR/USD to start strong next week with a break above 1.2179 resistance towards 61.8% projection of 1.1776 to 1.2179 from 1.2005 at 1.2254 first. Break will encourage further rally towards cluster resistance of 1.2408/14 (38.2% retracement of 1.3668 to 1.1639 at 1.2414 and 100% projection of 1.1776 to 1.2179 from 1.2005 at 1.2408).



However below 1.2082 minor support will indicate EUR/USD is still bounded by consolidative trading and risk retest of 1.2005 low. But still downside should be contained well above 1.1930 cluster support and medium term bullishness remains as long as this level holds.


Please see the attached graph of technical indicators

Good luck
 

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