Yesterday the EURUSD continued the rallied but with a narrow range and managed to close near the high of the day, furthermore closed above the previous day high, suggesting a strong bullish momentum.
However it made a pause on mid-term resistance at 1.1236 possibly waiting for today’s nonfarm payrolls number.
The pair continues to close above the 10, 50 and the 200-day moving averages that are acting as dynamic support.
The key levels to watch are: The daily resistances at 1.1556, other daily resistance at 1.1460, daily support at 1.1097, the 200-day moving average at 1.1028 (support), the 10-day moving average at 1.0965 (support) and the 50-day moving average at 1.0910 (support).
EUR/USD recorded a decline on Friday. The session started at 1.1206 and the euro lost 54 pips after the US NFP report proved weaker than expected. Daily extreme values were reached respectively at 1.1243 and 1.1109. If the downward trend continues, the euro will reach the support at 1.1100.
On the last Friday’s session the EURUSD tried to rally but found enough resistance at 1.1237 to reverse and closed in the red, near the low of the day, however managed to close within the previous day range, suggesting a weak bearish momentum.
The pair continues to close above the 10, 50 and the 200-day moving averages that are acting as dynamic support.
The key levels to watch are: The daily resistances at 1.1460, other daily resistance at 1.1237, daily support at 1.1097, the 200-day moving average at 1.1028 (support), the 10-day moving average at 1.0961 (support) and the 50-day moving average at 1.0909 (support).
But an object in motion will continue in that motion until an external force with sufficient magnitude acts on it. We’re pretty clearly trading in a ranging market. And the price is smack bang in the middle.
Which way will it go no-ones knows? But my view is that it is more probable that the market will continue on this up leg for another few weeks to reach 1.14 maybe higher. But then turning and heading south again quite possibly very quickly back below 1.09. Continuing what it’s all ready doing and trading in this set range.
I could be wrong. Horribly, horribly wrong.
But we would need a significant, really big, gee wiz why didn’t I see that coming type news event to knock this pair off course.
Wonder if old mate Jake is reading this. Like to hear his view on my chart. Hint hint bro.
The pair reached the support at 1.1086, formed a hammer candlestick on the one-hour time frame and started moving to the upside again. It’s currently testing the resistance at 1.1140 and a breakout above that level would mean that it will likely continue climbing towards 1.1180 - 1.1200.
The pair started rising. The main fundamental factors remain to support the US dollar. The rise last week showed that the time for correction has come.