The upward
EUR/USD rally turned out to be very stable and the EUR broke out above 1.1713
without much effort, reaching the resistance trend line of the channel (in red)
at 1.19101.
Despite the
attempt to continue rallying and the small breakout above the trend line, I
think that the pair will not be able to remain above the high without a
correction. The catalyst for the drop was yesterday’s NFP data, which turned out
to be more positive than expected.
I think
that in the coming week the drop will continue in a corrective manner and it
will reach the support trend line of the channel (in red) in the zone around 1.1650
– 1.1580. If the drop
continues below that zone it could reach 1.1400.
A breakout
to the upside would be a very strong signal for strengthening of the upward
trend.
Excellent analysis, thank you for sharing!
ReplyDeleteThe closest target to the downside is around 1.1700.
ReplyDeleteGood post!
ReplyDeleteGood insight.
ReplyDeleteA small gap up.
ReplyDeleteI fully agree with your analysis.
ReplyDeleteInteresting analysis, thanks.
ReplyDelete