Simple Moving Average(SMA) 50-period (red), 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Intraday pivots and Intermediate-term support and resistance
Multiple Time-frame Analysis
- After the ECB meeting today where Trichet's statements regarding inflation suggested a quicker rate hike, maybe even next month, the euro surged.
- The EUR/USD broke yesterday's high at 1.3890 and is now closing in on the 1.3980 target.
- This 1.3980 to 1.40 zone is 78.6% retracement and a declining trendline, so there is resistance here.
- We would probably need tomorrow's NFP before surging above 1.40 for our next bullish target of 1.4280.
- The RSI in the 4H chart is reaching above 70 again, a good sign of bullish continuation. We also see that the current rally is in an adjusted, accelerated channel.
- The daily chart shows the targets above.
- Also the bearish scenario is shelved until at least a break below 1.37. A would suggest a test of the 1.34 pivot.
Will the EUR/USD push towards 1.4280 after the NFP? We would love to hear what you think.
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