Times when the fundamental and technical analysis come together and show you one direction are the best times to trade. That kind of situation we do have currently on the EURUSD, where the sentiment is very bullish and we can suspect that this optimism will continue in the next days or even weeks.
First let us start with the fundementals. Today, traders will still digest the worse US inflation released on Friday. The miss with expectations caused USD to slide and contradicted the movement caused by the better NFP from the first Friday of the month. What is more, during the weekend, none of the countries or islands were nuked and none of the missiles were fired. Which is obviously good and cause correction on the save heaven assets like for example USD.
Technically we do have a combination of several factors here. First of all, we do have a bullish trend, with the blue up trendline being a proof of that. It was recently used as a support with the price creating two daily hammers on it. That was a very strong buy signal, which not surprisingly resulted in an upswing. In addition to that, the price created a wedge formation (black), which is a trend continuation pattern and as expected, resulted in a sharp rise.
Currently the price stopped on the first horizontal resistance on the 1.183 (orange) and is using this level as the trigger for a short-term take profit action. Despite the small drop in the morning, the scenario here is bullish and stays that way as long as the blue up trendline is below the price.
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All is ready for the EURUSD to hit new mid-term highs
Published 08/14/2017, 06:13 AM
All is ready for the EURUSD to hit new mid-term highs
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Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
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