EURUSD: Halts Decline, Recovers Higher.
EURUSD: With EUR halting its Monday losses and triggering a recovery, the challenge is for it to retake the 1.3772 level broken during Monday trading. If eventually this is seen, further gains could occur towards the 1.3824 level, its Feb 28 2014 high. Above here will pave the way for a run at the 1.3893 level, its Dec 27 2013 high. A turn above here will expose the 1.3950 level and next the 1.4000 level. On the downside, support lies at the 1.3720 level with a violation of here targeting the 1.3698 level, its Feb 28 2014 low where a break will turn focus to the 1.3642 level , its psycho level. A cut through here will aim at the 1.3561 level, its Feb 12 2014 level. All in all, EUR remains biased to the upside in the medium term.
EUR/USD in recent weeks, has been experienced many reformation with a gradual upward trend that Buyers over price increases obtained the highest price of 1.39145. As it is obvious in the picture below, Price has passed the descending trend line made of 3 peak prices and with being above 5-day moving average warns about more ascending.Currently in long-term time frames such as monthly , weekly and daily price is above the 5-day moving average which implies consistent uptrend with potential of further rise in price during the next candles.
In daily time frame of previous Candle the ideal Shooting Star candlestick pattern is seen that has long higher shadow and cause the failure of Buyers in reaching to the higher price and possibility of formation of a peak price in this range. By fixing of Shooting Star candlestick pattern’s warning (closing of descending candle at the end of the day) there is a possibility for descending of price.As it is obvious in the picture below, there is a harmonic butterfly pattern(also AB=CD Pattern) between the bottom price of 1.34788 and the top price of 1.39145 that there is a potential for changing price direction from D point of this pattern. The first warning for descending of the price in current condition is breaking of the supportive level of 1.38521.
S1=1.38521
S2=1.38235
R1=1.39145
R2=1.4000
