After one
day of consolidation EUR/USD formed an inverted hammer candlestick pattern in
the four hour filter chart and headed up. That was to be expected after it
reached its target at 1.2700 and broke even below that level, reaching 1.2660.
There is a very strong support in this zone, so a pullback was, as I mentioned,
natural. Personally, I think correction is beginning with target 1.2730,
perhaps even 1.2800. Time will tell whether the trend is exhausted, but for the
moment at least I intend to start buying while keeping an eye out for any
signals that it might start descending again.
EURUSD fell during the course of the day on the last Friday session, breaking the bottom of the hammer created last week. This is a very negative sign and therefore the market should continue to go much lower. The next target is probably the 1.25 level but the longer-term charts suggest that we could go even lower.
ReplyDeleteThe dollar index index rises from 11 consecutive weeks, the first time there since 1971, the year in which the exchange rates fluctuated.
ReplyDeletePlus there is no interesting news in the euro zone.
ReplyDeleteVery good information, thanks.
ReplyDeleteWell spotted! I’ll be even more careful.
ReplyDeleteGood information, good post.
ReplyDelete