- Daily: Yesterday's EUR/USD and GBP/USD update noted that the EUR/USD was targeting 1.30/1.31 area. The 1.30 area has already been reached. The pair now enters an important resistance zone.
- For this to be a wave 4 to be followed by a bearish wave 5, it can not cross above the 1.3250 level. I am anticipating some topping action coming out of next week's open.
- If the RSI rallies above 75 though, the momentum is too bullish to consider the bearish scenario.
- I don't have an opinion other than watching for reactions coming out of this resistance zone.
- Weekly: Thee weekly chart offers a different look and fibonacci study from a larger swing. We see that the 1.31/1.32 area is 38.2% retracement here, and 78.6% retracement of the swing measured in the daily chart.
- Also, the RSI is still below 60, and below 50 as well. The weekly shows strong momentum, but overall bearish mode. Therefore, until the momentum can be shown to have decelerated and turning, I have no opinion on this until probably after next week.
Fan Yang Currency Analyst Commodity Trading Advisor
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