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Forex pairs in this Article » EUR/USD
FXStreet (Barcelona) - Goncalo Moreira CMT, FXStreet Technical Analyst comments that surely the week closes with a bullish column with its foundations at the EUR/USD 1.3500 figure, but the dominant up trend which started last summer is now challenged by a violation of internal line with a second consecutive double-bottom signals.

Key Quotes

“One more bearish signal would come with a convincing break below 1.35 erradicating the next internal bullish line.”

“The longer the recently established bearish 45º line extends itself to the right the more toppy the euro appears on these measures. 1.2950 is still the current validated downside target on a 3-box reversal chart, opposite to the 1.4840 which, on a candlestick chart, would be confluent with a potential channel resistance in about 25 weeks.”

“On a very small granulation showing supply and demand uncontaminated from al the intra-hour spikes and range trading periods, it's worth noticing the relative size of the O-columns. Periods of price erosion have been more directional than upside reactions with seemed to be curtailed by brief exhaustions.”

“The downward channel neatly appearing on the 1-box reversal chart is capping the price action at 1.3640 and declining 10 pips with each new column. A small fulcrum formed during the week catapulting the pair to where it is trading now (1.3610) setting in motion an advance to the channels resistance.”
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