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
- EUR/USD was supported near 1.3740 after breaking below 1.3780. The market was not able to reach the previous low at 1.3715.
- However the RSI low did slide below the previous. This is called a positive reversal signal.
- The signal suggests a swing projection, which targets 1.3890.
- The 1H chart below show the market still with bullish bias in the RSI, as it has tagged 70, but failed to tag 30. The market action shows that there is a slight bullish bias (lows keep getting higher), but the bullish momentum is not strong.
- In fact we might be in congestion ahead of major event risks in the ECB interest rate meeting on Thursday, then the Non-Farm Payroll release on Friday.
- A failure to break past 1.3855 can result in further consolidation ahead of the events, with a decline back towards 1.3740, but missing it. If it breaks below it instead. Anticipate a decline below 1.37 to initiate a bearish signal towards 1.3560 then the 1.34 area.
Will the EUR/USD continue to rally, or will it respect the 1.3860 highs? We would love to hear what you think.
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