The Euro is on a moving strong up again this week and I think next week will be more of the same. Before I get into the post I recommend that you follow me on twitter to get all of the market updates. I have several reasons to support my suggestion and I recommend that you look at what I am telling you and make your own conclusions by doing your own suggestions.
First we see that the weekly chart closed with a strong bullish break out which indicates more gains due to the strength of the break out. The price broke and closed the strong resistance of 1.3500 and the 50% Fibonacci retracement level at the same price. The .618 level is at 1.3899 which will be the next target based on the weekly chart.
The daily chart past the 50% retracement at 1.3570 and the next target is.618 level at 1.3740 and we have some strong resistance at 1.3700 before that. I think we could see upside move to to the 1.3700. I think we could see some bounces at those levels and I would be looking to buy those pullbacks.
4 Hr Chart
On the 4Hr chart we are currently up 6 straight bars in a row and I would not buy until we see a pullback to a support level. I know it is not fun to wait but it is never wise to chase a trade.
The Current Market sentiment is long Euro because of the news of all of the global support of the Euro regarding bailouts. In addition to the current sentiment, trading indicators that keep track of current orders and held positions are indicating more bullishness as well.
However due to the instability of the Euro right now and all the debt problems all it would take is one bad news piece to “leak out” and the floor could go out so as always use proper management and don’t take on risk you can’t afford to lose.
Here is a great article that has some more analysis of other pairs by tradeprofits.
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