Will EUR/USD Continue Towards 1.36?

We have been following EUR/USD for some time now and we still see this pullback as another corrective pullback. If you have read our previous posts, you would know that 1,33 was formidable resistance, and that if broken we predicted that prices would rise sharply. And so they did.

Prices reached 1,34 in an impulsive pattern as our analysis expected because of the I-II-i-ii wave count we supported. We still believe that this pair can continue higher towards 1,36 as long as prices move upwards impulsively and no support is broken. First lets take a look at the 2 hour chart below.

EUR/USD 2 Hours" title="EUR/USD 2 Hours" width="800" height="482">
As one can see in the above chart, after the spike that lead to 1,34, prices pulled back to back test the broken resistance level at 1,33. This correction is most probably over.

Bulls should be very cautious and keep the elliott rules in mind. The downward move could be a wave iv correction that is probably over. Prices falling down to 1,3140 would cancel this bullish view. Resistance currently lies at 1,3330 and if a breakout occurs, prices will soon test 1,34 high. Currently the pattern from 1,30 shows higher highs and higher lows, confirming the uptrend.

Bears on the other hand want prices to just pull back towards 1,3340 and then fall back down strongly below 1,3260 to start a sequence of lower lows and lower highs. 1,34 is the last stand for bears. Breaking that level will most probably enable stop orders and push prices even higher.

Our technical view remain bullish with targets above 1,35.

Disclosure: None of the information or opinions expressed in this blog constitutes a solicitation for the purchase or sale of any security or other instrument. Nothing in this article constitutes investment advice and any recommendations that may be contained herein have not been based upon a consideration of the investment objectives, financial situation or particular needs of any specific recipient. Any purchase or sale activity in any securities or other instrument should be based upon your own analysis and conclusions.