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 is strong. After pausing at the 1.3450 area twice, the market cracked it heading above 1.35.
- The 2 fibonacci studies are 1. extended retracement of the small decline at the beginning of the week. 2. projection of last week's rally.
- We see that near 1.36. we have both 61.8% projection and slightly more than 161.8% extended retracement.
- We can also see the 1.3580 area as 50% retracement in the daily chart.
- The next target after these are the 1.37 area and 1.3745(61.8% retracement). These are also pivots to be tested as resistance.
- The RSI in the 4H chart is heading back into the overbought zone, and could develop a bearish divergence that will suggest a lost of bullish momentum. For now, the market is still strong, breaking above 1.3450, and than testing it as support.
- This bullish scenario is likely invalid if the market makes it back below 1.3430.
- The chart below shows that the market is possibly in a correction against the decline that started in November.
- Although this should be considered, price action suggests that the bulls are in control at the moment, and there does not seem to be a strong challenge until we get towards the 1.37 area.
Is the EUR/USD rally just a correction rally or a start of an uptrend? We would love to hear what you think.
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Fan Yang CMT
Chief Technical Strategist