Hello, guyz, I just want to share with you my observations and my thoughts on a possible future - EUR/USD move.
Ok, so what happened? A fast priced - in action from the good news from Greece that they have formed up a new goverment, but as we can recall - it was very short joy, cuz actually this doesn't mean anything. Their future work will give results... And then the market focused again on Spain's problems and the euro was beeten pritty much.
The euro was low as 1.23532 and on the 27nd of May it formed a bottom. From there - the pair is moving up.
Here is a weekly chart of our favorite EUR/USD pair:
And as we can see there is divergence shown by MACD and RVI.
I think that the price my reach the elusive 1.3000 level next week.
Yes, this is a long - term - trend - reversal. Europe is making good progress at containing the crisis and saves Spain from a bank-system-crash. Greece shows progress. No need for the greenbank, trust is returning and investors are returning to Europe.
The Bears are taking a break, so that there can be space for a next wave of selling right to the levesl around 1.2300. Which means that this weekly move could be a bearish flag.
By the way here is a graph of the DLTR-US, but a daily graph.
RVI shows that the index is at the overbought levels and shows that there might be a big move to the south.
This is it from me.