17 Feb 2015
EUR/USD near-term bullish – SunshineProfits
FXStreet (Barcelona) - Przemyslaw Radomski of Sunshine Profits, gives the technical outlook and the trading setup for EUR/USD, viewing the pair to remain bullish in the near-term.
Key Quotes
“EUR/USD still remains above the support zone created by the 61.8% Fibonacci retracement (based on the entire 2000-2008 rally) and the 100% Fibonacci price projection, which means that an invalidation of the breakdown below these levels and its positive impact on the exchange rate are still in effect.”
“From this (daily chart) perspective, we see that EUR/USD moved lower and reached the lower border of the consolidation yesterday. Despite this small deterioration, the pair rebounded and climbed above 1.1400 once again.”
“With this upswing, the exchange rate reached the blue declining resistance line, which is a neck line of the potential reverse head and shoulders formation. Therefore, in our opinion, if the pair moves higher and breaks above this line, it would be a bullish signal, which will trigger further improvement and an increase to around 1.1617, where the size of an upward move will correspond to the height of the formation and where the previously-broken 50-day moving average is.”
“Nevertheless, before we see a realization of the above-mentioned scenario currency bulls will have to push the pair above 1.1533, where the upper border of the consolidation is.”
“Very short-term outlook: bullish”
“Trading position (short-term): Long positions with a stop loss order at 1.1056 are justified from the risk/reward perspective at the moment.”
Key Quotes
“EUR/USD still remains above the support zone created by the 61.8% Fibonacci retracement (based on the entire 2000-2008 rally) and the 100% Fibonacci price projection, which means that an invalidation of the breakdown below these levels and its positive impact on the exchange rate are still in effect.”
“From this (daily chart) perspective, we see that EUR/USD moved lower and reached the lower border of the consolidation yesterday. Despite this small deterioration, the pair rebounded and climbed above 1.1400 once again.”
“With this upswing, the exchange rate reached the blue declining resistance line, which is a neck line of the potential reverse head and shoulders formation. Therefore, in our opinion, if the pair moves higher and breaks above this line, it would be a bullish signal, which will trigger further improvement and an increase to around 1.1617, where the size of an upward move will correspond to the height of the formation and where the previously-broken 50-day moving average is.”
“Nevertheless, before we see a realization of the above-mentioned scenario currency bulls will have to push the pair above 1.1533, where the upper border of the consolidation is.”
“Very short-term outlook: bullish”
“Trading position (short-term): Long positions with a stop loss order at 1.1056 are justified from the risk/reward perspective at the moment.”