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1 Jan 1970
EUR/USD 1.3650 target should be taken with a pinch of salt - FXStreet
FXStreet (Barcelona) - Goncalo Moreira CMT, FXStreet Technical Analyst comments that the recently cleared EUR/USD resistance at 1.38 saw the exchange tumbling back below this week, reaching the 1.3750 and recovering to 1.38 again where it presently bids at.
Key Quotes
“This price action carved a double-bottom signal at 1.3840 which could be used to reduce long positions in this pair.”
“A new bearish 45º line emerged from the tops and only a virulent upward movement could eradicate it right now. So expect it to be on our charts for the several weeks to come. On the other side, the bullish line, now at 1.3700, sees its existence threatened and so protective stops which may trail with it.”
“The pair came within a whisker of the still active target on the 3-box reversal chart at 1.3960/80 (depending if we take HL or only C prices). An unfulfilled or non-achieved target, which means activated but not reached, is a bearish argument. Nonetheless, mid-term EUR/USD point and figure chart are still unambiguously bullish.”
“Since no downside target can be activated on a 3-box 20 pip reversal chart, a finer 10 pip box granulation offers bears some appetizers to start thinking in short positions. An horizontal count is activated and pointing to 1.3650. The 45º line, closer to price in chart, looks even more vulnerable.”
“Despite the turn in EUR/USD, do not rule out possible reaction to the strong support at 1.38- which was for many weeks it was a formidable resistance.”
Key Quotes
“This price action carved a double-bottom signal at 1.3840 which could be used to reduce long positions in this pair.”
“A new bearish 45º line emerged from the tops and only a virulent upward movement could eradicate it right now. So expect it to be on our charts for the several weeks to come. On the other side, the bullish line, now at 1.3700, sees its existence threatened and so protective stops which may trail with it.”
“The pair came within a whisker of the still active target on the 3-box reversal chart at 1.3960/80 (depending if we take HL or only C prices). An unfulfilled or non-achieved target, which means activated but not reached, is a bearish argument. Nonetheless, mid-term EUR/USD point and figure chart are still unambiguously bullish.”
“Since no downside target can be activated on a 3-box 20 pip reversal chart, a finer 10 pip box granulation offers bears some appetizers to start thinking in short positions. An horizontal count is activated and pointing to 1.3650. The 45º line, closer to price in chart, looks even more vulnerable.”
“Despite the turn in EUR/USD, do not rule out possible reaction to the strong support at 1.38- which was for many weeks it was a formidable resistance.”