Wednesday, November 02, 2016

EUR/AUD and EUR/USD Are Forming a Powerful Bullish Trend



EUR/AUD has formed a RSI divergence between the last two lows, as well as an engulfing bullish bar on the weekly time frame and strong bullish bars once again on the weekly and the daily time frames, which demonstrate that the bulls are in control now.


These signals are unequivocal and very telling that at the moment the pair is forming a strong upward trend.

Every retracement this pair forms can be used to open long positions at the moment and, in my opinion, this RSI divergence between the last two lows on the daily and weekly time frames will result in a move to the upside towards 1.4884.


The same logic applies to EUR/USD.

The move to the upside began after a RSI divergence between the last two lows on the daily and weekly time frame, as well as an engulfing bullish bar on the weekly time frame. In this case the move to the upside resulting from this divergence will likely reach 1.1254.


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