14 August, AtoZForex.com, Vilnius – Fundamentally EURUSD weekly is substantially better set than it was before and with a technical break of a major resistance level the bull move could be confirmed.
Fundamentally, although the main Greece drama has passed, danger is not over yet. Greece’s parliament meets today to authorize a new €85bn bailout deal proposed by the creditors in order to pay the indebted country’s upcoming €3.2bn payment to ECB on 20th of August to the ECB.
Yet, investors seem already bored with the prolonged Greece fuss. Taking in mind current a lot more drastic global developments, such as China or the Fed, Greece could be viewed as no longer relevant.
Therefore, after additional concern of massively devalued RMB for investors who are already doubting the Fed rate hike, Euro is substantially better set then before to climb higher against the dollar.
Fundamental news for next week:
- Wednesday’s FOMC Meeting Minutes;
- Friday’s German/French Flash Manufacturing PMI.
Technically, Euro has started its recent upward move after a rebound from an upward slopping monthly trend line at 1.08 and has currently stopped by a Fibonacci 23.6% retracement level at 1.122 ahead of a further expected run to a downward slopping monthly trend line at approximately 1.138.
Concerning long entries, a buy order could be placed at 1.1221 with a stop loss at 1.118 and aimed for a first take profit at a custom Fibonacci 10% retracement level 1.135 and a second at around 1.139.
To short the pair, we would need to see a break through a 38.2% Fibonacci retracement level at 1.1076 and from there on Euro could be sold from 1.106 and aimed towards a first TP at Fibonacci 50% at 1.096 and a second 61.8% Fibonacci retracement zone at 1.084.
Current pip count: +110