On the daily chart, the bullish breakout of the mid-term bearish channel is obvious with quite a long bullish candlestick.
Now the pair is testing 61.8% Fibonacci level after bearish rejection, which appeared at 1.2970 with gap to the downside at the opening this week.
Stabilization below 61.8% Fibonacci level gives the confirmation to resume the downside movement. However, if the pair fails to do so, this may push the pair up again to retest 1.2970.
Thus we can say that EUR/USD is moving in the mid-term bearish direction and short-term bullish direction after breakout of the mentioned channel.
Now the pair is testing 61.8% Fibonacci level after bearish rejection, which appeared at 1.2970 with gap to the downside at the opening this week.
Stabilization below 61.8% Fibonacci level gives the confirmation to resume the downside movement. However, if the pair fails to do so, this may push the pair up again to retest 1.2970.
Thus we can say that EUR/USD is moving in the mid-term bearish direction and short-term bullish direction after breakout of the mentioned channel.
Last Thursday, EUR/USD managed to break and close above the consolidation range upper limit at 1.2880.
EUR/USD managed to break and close above the upper limit of the long-term bearish channel established in last October. However, this isn't considered a valid bullish entry as the pair has a considerable resistance area at 1.2890-1.2970, which is a 61.8% Fibonacci level, and also the previous broken daily low.
Last Friday, the pair was testing the upper limit of the SUPPLY zone at 1.2970 which held the price below acting as intraday resistance.
Also Bearish price action towards this resistance area 1.2970 is fairly strong manifested in the daily bearish engulfing candlestick.
However, its break will open the way directly to 1.3075 which, if broken too, will go up to 1.3190, these moves, if happen, can be profitable for intraday traders.
The current midterm bearish direction and trend of the pair, besides the bearish WEEKLY closure last week, enhances the bearish side of the market more than the bullish one.
It's important to mention that the pair has a good support around 1.2600-1.2585, which is a significant previous weekly low.
EUR/USD managed to break and close above the upper limit of the long-term bearish channel established in last October. However, this isn't considered a valid bullish entry as the pair has a considerable resistance area at 1.2890-1.2970, which is a 61.8% Fibonacci level, and also the previous broken daily low.
Last Friday, the pair was testing the upper limit of the SUPPLY zone at 1.2970 which held the price below acting as intraday resistance.
Also Bearish price action towards this resistance area 1.2970 is fairly strong manifested in the daily bearish engulfing candlestick.
However, its break will open the way directly to 1.3075 which, if broken too, will go up to 1.3190, these moves, if happen, can be profitable for intraday traders.
The current midterm bearish direction and trend of the pair, besides the bearish WEEKLY closure last week, enhances the bearish side of the market more than the bullish one.
It's important to mention that the pair has a good support around 1.2600-1.2585, which is a significant previous weekly low.
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