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
- The EUR/USD picked up volatility ahead of the European session as expected in yesterday's second EUR/USD post. By then, the market has broken above the resistance of a narrow range at 1.3308.
- The rally that followed went to the 1.3430 area but was rejected there.
- There is sideways action to start the US session, but if the market is supported above 1.3340, a new impulse wave is developing, and we can anticipate further rally. A break below 1.3340 suggests we are not done with the current consolidation.
- The bullish scenario opens up above 1.3450 and 1.35. The first resistance is at 1.3580, but a more important one will be 1.37. We should see topping here to finish the current corrective rally. The market should not rally above 1.3745 for the bearish scenario to remain.
- The daily chart shows yesterday's bearish candle completely reversed. If the market closes above 1.3450 in the daily, it should be able to head towards the next resistance at 1.3580.
- Before that we are resolving wave b. This so far has only retraced 38.2% of a. If today's price action breaks back below 1.3340, we are likely not done with b. Then we would look at the 1.3250 as the first bearish target, and 1.3170 below that (pivots seen in the 1H chart).
- If the market closes above 1.3450 in the daily, then we are probably done with b, and onto a c wave in a zig zag.
Fan Yang CMT
Chief Technical Strategist