EURUSD Monthly Close Could Shift Flows!

0 117

EURUSD rallied above 1.19 during the Friday session. However, bulls face a monstrous resistance above the multiyear high.

The long-term bearish trendline from the 1.60 top in 2008 started clouding the medium-term outlook.

Only a trendline break will increase chances to reach the 38.2% Fibonacci at 1.25. Without a valid breakout, we expect the pair to decline. Furthermore, we do so despite indicators offering no significant signs of a bearish signal.

On the other hand, we do see some bias appearing on the MACD histogram. To end the session with a false break, this might be what is needed.

The medium-term support lays at the 23.6% Fibonacci at 1.1670.

eurusd

In the shorter-term, on an intraday basis, the upper regression was taken out. A slide back below the trendline resistance could provide a signal for more weakness.

Further down, the next support lays at the median regression of the medium-term ascending channel.

A move to the 38.2% Fibonacci of the 1.0720-1.1910 leg, near 1.1459 could follow. The said level comes in confluence with the median regression of the sort-term ascending channel. However, we require a break of the 23.6% Fibonacci first.

Any attempt to break higher will only be validated if the weekly or the monthly candlestick close above the trendline resistance.

Test your strategy on how the euro will fare with Orbex - Open your account now. 

START TRADING

or practice on DEMO ACCOUNT

Trading CFDs Involves high risk of loss

Leave A Reply

Your email address will not be published.