EUR/USD: The Monthly Chart is in a large down Down

Tian Kriek

Analyst


July 16, 2019 07:23 AM

BULLISH

Daily Trading Range:
EUR/USD: The Monthly Chart is in a large down Down channel and if you plot the Down Fibs then there is a Monthly D extension at 1.0000 (Parity). On the Weekly time frame there is also a down Fibonacci swing with its D extension way below parity at 0.9300. In fact, the market has broken a counter trend line, the Weekly StochasticRSI is in the Sell Zone AND the market formed bearish candlestick formation (Bearish Evening Star). I aknowledge that price is converging with pivotal support at 1.1200. Therefore I assume that the market is indeed at a low price suggesting a retracement before falling. 1.1200 is the line in the sand. If the latter level is broken then price will be poised to fall MUCH further. On the Daily chart there is also a Down Fibonacci swing however, price is at the backside of a falling wedge resistance suggesting a bounce. The Daily StochasticRSI is also bullish therefore there may be a slight change that price will bounce at 1.1200 and maybe head bullish for a short while. There is a down CTL on the Daily chart and in the event that this ctl is breached then price is likely to move up to around 1.1500 (Up Sub D)

Daily Chart

Daily Chart

Daily Support and Resistance

Resistance 3: 1.2650
Resistance 2: 1.2090
Resistance 1: 1.2150
Current Price 1.1222
Support 1: 1.1420
Support 2: 1.1350
Support 3: 1.1300

Two Hour Chart

Two Hour Chart
The market is moving can you keep up?