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
Previous: Forex Notes (2/23)
- The bullish scenario mentioned in yesterday's Forex notes was the exact path the market took. After breaking above 1.3720, the market was in a throwback from 1.3780 back to 1.37. The 1.37 support indeed held, and the market is now back up to the 1.38 level.
- The 1H chart shows the momentum remaining bullish with the RSI remaining above 40, but there is a bit of a lost in momentum reflected by the bearish divergence.
- The 4H chart does not even show bullish momentum, but the RSI did remain above 40, and being above 60 reflects bullish bias. If the market breaks above the current target of 1.3860, we can see the RSI reach above 70 for a bullish momentum breakout signal.
- The daily chart shows the immediate target above 1.3860 is 1.3980, 78.6% retracement level. and a declining trendline, which might actually be lower, close to the 1.39 level, so anticipate resistance at this level as well.
- Above this 1.40 area, 1.4280 is our next target (Nov. 2010 high).
- For the bearish scenario, a decline back towards 1.3550 can be expected if the market breaks below 1.37, but a more significant bearish scenario only opens up below 1.34.
Will the EUR/USD make and break above 1.40? We would love to hear what you think.
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