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 is most likely in a topping pattern, with extended bearish divergence, but continues to be contained above the rising support.
- However, we had a positive reversal signal on the 25th that targets 1.3820-1.3830 area. This is also a 100% projection of wave (a) for wave (c).
- If the market breaks above 1.3830 however, it can extend towards 1.3975.
- The more probable downside scenario could start with today's level near 1.3745 area. The market has shown a tweezers-top in the 4H chart, with a high at 1.3757. A break above that has the 1.3820-1.3830 area in sight.
- The decline needs to close below the rising support and 1.3640 first, as well as provide a lower top, or we continue to have upside risk.
- The RSI in the 1H chart has to break below 40 as well, and should tag 30 to show it has bearish momentum.
Will the EUR/USD really top off as everyone believes? Do you have a bullish outlook, or perhaps a neutral one? We would love to hear from you.
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Fan Yang CMT
Chief Technical Strategist
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.