EUR/USD spot rate – pos­si­ble fur­ther up­side move­ment

Financial Mirror (Cyprus) - - FRONT PAGE -

From the FX pair EURUSD daily chart there is a bear­ish move­ment (cor­rec­tion) within a bullish re­ver­sal dou­ble-bot­tom pat­tern. A dou­ble bot­tom for­ma­tion was formed and com­pleted up­wards upon up­side pen­e­tra­tion (closing prices) of point B marked above on the chart. With this dou­ble bot­tom for­ma­tion we have ob­served a fail­ure swing com­pleted up­wards (a-b-c pat­tern).

Us­ing Fail­ure Swing bot­tom the­ory we ex­pect to wit­ness an up­trend in the fol­low­ing months.

Point C on the chart shows that the price failed to go be­yond the pre­vi­ous bot­tom level at point A. In­stead, we have a cor­rec­tion to­wards point B (last top).

Our tar­get is set by the ver­ti­cal dis­tance be­tween point A and point B and by the time it breaks point B level, with a valid green can­dle­stick, sug­gested long po­si­tions are ini­ti­ated. We see a verification of our first tar­get at the point 1.1180. Our next tar­gets are fo­cused on the val­ues of 1.1518 and 1.1841. The above set tar­gets are also con­firmed by the Fi­bonacci Re­trace­ment lev­els at 50% and 61.8%.

The above anal­y­sis for fur­ther up­ward move­ment will be can­celled if at any case we see a daily close be­low point C at ap­prox­i­mately the 1.0600 price level.

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