EURUSD Weekly, a mess


24 July, AtoZForex.com, Vilnius – Lately EURUSD has been acting truly valiantly. Fundamentals were supportive, but somehow downbeat and price moved in an erratic pattern. Therefore, technical analysis shows a better picture then fundamental.

Fundamentally, frankly speaking, Eurozone appears to be in a mess which is mostly due to the recent Greece issues. Even so that released negative news are being translated into positive moves in the financial market and vice versa. Therefore, we turn to technical analysis. However, before doing so, it is worth to note that, in my belief, although it seems Greece debt has been managed and a bright future is near, the country’s troubles will further haunt EU, in best case is that the media will stop writing about it.

Concerning news that might interfere with the underlying trend check Monday’s German Ifo Business Climate and Wednesday’s FOMC Statement.

EURUSD Daily Timeframe, resistive monthly downward slopping trend line EURUSD Daily Timeframe, resistive monthly downward slopping trend line

Technically, the Euro has been trending lower on its daily time-frame from the moment it had reached a monthly downward slopping trend line. Currently, the price is in correction and before continuing down to a zone of 88.6% Cutome Fibonacci retracement level and monthly upward slopping trend line at 0.60 it might reach a retracement of 32.8% Fibonacci level at 1.107.

EURUSD H4 Timeframe, support and resistance trend lines EURUSD H4 Timeframe, support and resistance trend lines

For now, broken monthly downward trend line in a combination of the middle linear regression line at 1.1015 will lead to at least 60 pip skyward move to Fibonacci 38.2% retracement level with stop loss just below a local low.

However, a preferred sell order is at 1.08 with a stop loss of 50 pips and a take profit at 1.06 zone

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