Thursday, October 19, 2017

The Bullish EUR/USD Bars Were A Signal For A Rally

A strong bullish bar on the D1 time frame yesterday hinted that today we could see the EUR/USD move to the upside resume and that, indeed, happened.

Also, today another strong bullish bar formed on the H4 time frame after the beginning of the European session, which confirmed that expectation for a rally.

The first resistance should be around 1.18500-1.18700, but I expect the rally to continue at least until the pair reaches 1.1950, after which there will be a finished cycle of three corrective waves to the upside (the H4 chart) after the drop from 1.20924 to 1.16693.

In my opinion after the correction on the larger time frames (the one on the D1 time frame) is not over and after this rally I think there will be a new movement south to 1.1500, where is the zone of the 38.2% Fibo of the impulse rally from 1.05693 (10th April 2017) to 1.20924 (08th September 2017).