Simple Moving Average(SMA) 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
- The EUR/USD continues to look bullish. To start the week, the EUR/USD continued to rally and is now starting to break away from 1.40. The Daily RSI is tagging 70 and a break above this is a bullish momentum breakout. The 4H RSI also shows bullish continuation as it makes new highers above 70.
- While these are bullish signals for the medium term with a swing projection towards 1.44. We also have the1.4280 resistance to monitor. These can be the next 2 targets as we should mind the 1.44 to 1.45 zone as an area of strong resistance.
- The 1H chart is showing a developing bearish divergence as the market breaks above 1.40. In the short-term we might be getting to a point where the market would have a bit of a correction but only in the very short-term. It is very possible that a decline at the moment to start the US session will find support as early as the 1.3970-1.3980 area.
Will the EUR/USD confirm the breakout towards 1.44, or will the rally be too sharp for a meaningful correction? Will the EUR/USD remain ranging in the long term, or has it turned bullish? We would love to hear what you think.