2 Jul 2015
EUR/USD: Bullish reversal expected – RBS
FXStreet (Barcelona) - Dmytro Bondar, Technical Analyst at RBS, sees bullish potential ahead for EUR/USD on a break above 1.11, targeting 1.14 levels.
Key Quotes
“The pair was trying to break below 1.10 and trigger a bear flag, but failed to do so, as Monday’s weak opening was quickly rejected and the pair sustained a level above the 1.1084 support. In my view, these levels provide an excellent risk/reward ratio for buying EUR/USD, as the risk level of 1.10 is very close, but potential target goes as far as 1.24. This is the ultimate target of a potential inverted Head and Shoulders pattern, which would be triggered on a break above 1.1450. If so, the targets will include 1.1850, 1.2090 and 1.2470. Stop is a close below 1.0965.”
“Strategy: keep long / buy at 1.11 for 1.14, 1.20 and 1.24 stopping on a close below 1.0965”
Key Quotes
“The pair was trying to break below 1.10 and trigger a bear flag, but failed to do so, as Monday’s weak opening was quickly rejected and the pair sustained a level above the 1.1084 support. In my view, these levels provide an excellent risk/reward ratio for buying EUR/USD, as the risk level of 1.10 is very close, but potential target goes as far as 1.24. This is the ultimate target of a potential inverted Head and Shoulders pattern, which would be triggered on a break above 1.1450. If so, the targets will include 1.1850, 1.2090 and 1.2470. Stop is a close below 1.0965.”
“Strategy: keep long / buy at 1.11 for 1.14, 1.20 and 1.24 stopping on a close below 1.0965”