Although the potential for the EUR to start dropping still exists, it’s becoming clearer and clearer that the European currency won’t give up that easily and it will struggle against the USD.
One look at the technical picture is enough to notice the RSI divergences on the move to the downside between 18th Nov 2016 (1.05689) to 3rd Jan 2017 (1.03400).
I am specifically referring to several divergences, not just one of them. I have drawn five of them on the chart between the pair’s lows and the RSI lows.
The first divergence has almost reached its limit at 1.07434. If the next divergences reach their limits then there will be a move to the upside toward 1.10119, 1.10431, 1.11402.
The approximate time for reaching those limits is around four months, which is a rather long period. That is a rough approximation, but a trader who is expecting such a move to the upside can decide how to trade it best.
Excellent analsyis, thank you for sharing!
ReplyDeleteGood insight.
ReplyDeleteI'll definitely watch those levels, thank you.
ReplyDeleteHelpful post, thanks.
ReplyDeleteGood work, keep it up.
ReplyDelete