Like a phoenix from the ashes, the euro has risen recently – and quite sharply so. Does it portend more strength ahead, or what exactly can we expect ahead? The answer features our game plan for the scenario ahead...
Let’s recall our Friday’s analysis:
(…) EUR/USD moved sharply higher earlier today, breaking out above the declining black resistance line that is based on its previous peaks. This move also brought us invalidation of the earlier breakdown below the lower border of the blue consolidation, while the Stochastic Oscillator generated its buy signal.
Taking the above developments into account, it seems probable that we’ll see further improvement and a test of the lower arm of the black triangle, of the upper border of the declining grey trend channel or even of the recent peaks at the upper border of the blue consolidation.
The situation developed in tune with the above, and EUR/USD reached both
resistances on Friday and earlier today. The move also took the pair to both the red resistance zone and the 61.8%
Fibonacci retracement, suggesting that we could see a downward reversal in the very near future.
But what about the daily indicators? The Stochastic Oscillator has generated its buy signal, and there is still some upside potential in it. The best course of action would be to observe the exchange rate and
in case we would see reliable signs of the bulls’ weakness, we’ll consider opening short positions.
We hope you enjoyed reading the above free analysis, and we encourage you to read today's Forex Trading Alert - this analysis' full version. There, we discuss also the current situation in GBP/USD, USD/JPY, USD/CAD, USD/CHF and AUD/USD. The full Alert includes more details about our current positions and levels to watch before deciding to open any new ones or where to close existing ones. There's no risk in subscribing right away, because there's a 30-day money back guarantee for all our products, so we encourage you to
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Thank you.
Nadia Simmons
Forex & Oil Trading Strategist
Sunshine Profits - Effective Investments through Diligence and Care
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All essays, research and information found above represent analyses and opinions of Przemyslaw Radomski, CFA and Sunshine Profits' associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Przemyslaw Radomski, CFA and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Radomski is not a Registered Securities Advisor. By reading Przemyslaw Radomski's, CFA reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Przemyslaw Radomski, CFA, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.