We Hope The Swift EUR/USD Recovery Didn’t Leave You In The Dust

EUR/USD has been flirting with the green support zone recently, yet strongly rebounded yesterday. Was it a surprise? Not if you’re reading our analysis. Enough tooting our horn, what’s next in store for the pair?

These were our yesterday’s observations:

(…) While EUR/USD slightly decline on Friday, the green support zone coupled with the 61.8% Fibonacci retracement stopped the sellers. A rebound followed, and the pair finished the day above the said support. This way, the tiny intraday breakdown below it has been invalidated.

In mid-November, we have seen similar price action, which suggests that reversal followed by higher values of the exchange rate may be just around the corner. This is especially so when we factor in the position of the daily indicators. Both the CCI and the Stochastic Oscillator have generated their buy signals just as they did in mid-November, which increases the likelihood of further improvement this week.

The situation developed in line with expectations, and the exchange rate moved sharply higher during yesterday’s session. This upswing brought the pair back above the previously broken lower border of the declining grey trend channel, and the earlier breakdown was invalidated this way.

Additionally, both the CCI and the Stochastic Oscillator generated their buy signals, lending more support to the bulls.

Earlier today, we saw another attempt to move higher. It’s our opinion that further rally will be more likely and reliable only if the exchange rate breaks above the late-November peaks.

Should the bulls prove strong enough and overcome that 1.1100 mark, the way to the upper border of the grey trend channel would be open.

If you enjoyed the above analysis and would like to receive daily premium follow-ups, we encourage you to sign up for our Forex Trading Alerts to also benefit from the trading action we describe – the moment it happens.  The full analysis includes more details about our current positions and levels to watch before deciding to open any new ones or where to close existing ones. Besides, you can still subscribe to our Alerts at very promotional terms – it takes just $9 to read the details right away and then receive follow-ups for the next three weeks at very preferred terms.

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Nadia Simmons

Forex & Oil Trading Strategist

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All essays, research and information found above represent analyses and opinions of Przemyslaw Radomski, CFA and Sunshine Profits' associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Przemyslaw Radomski, CFA and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Radomski is not a Registered Securities Advisor. By reading Przemyslaw Radomski's, CFA reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Przemyslaw Radomski, CFA, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

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