(€) EURUSD_Trend & Fib_Short-Mid-Longterm Analysis. (€)
Traders. Take a look at this Monthly chart on the left and Daily chart on the right. The purple Fibonacci levels are substantial and represent psychological pullback levels that will act as support if EURUSD decides to test the quality of the trend. This Fibonacci sequence is ran from the high in 2014 to the low found at the beginning of 2015.
EURUSD is in the middle of a big move to the upside after being held below resistance for two long years between 2015 and 2017. Price has broken above the resistance and since pulled back to verify old resistance was now support (see yellow arrow.) However, price has quickly approached major trend lines (red lines) that we should be cautious about. Understanding of the momentum behind the market after being held down for two years, we may have enough fuel to neutralize these trend lines soon.
Short Term (1-3 weeks) - We are in a solid uptrend but testing major overhead resistance. There is a high possibility we stay range bound between the .382 and .618 fib levels. Long trades only consideration at the moment. Unfortunately we will need to be patient and let the market decide what it wants to to. During this time path A, B or C will be defined and you will be updated.
Mid Term (3 weeks - 6 months) - We are in a known certified uptrend but the possibility of a pullback is likely being at major overhead resistance levels. The trend could resume but its just as likely we test support first. If support fails the pullback could be bigger than expected and play out a C scenario even though its very unlikely.
Long Term (6 months - Year)- The uptrend should continue to define itself. Target of 1.4 throughout 2018 into early 2019. Would need to see major weekly reversal signals and daily down trends to consider shorting EURUSD in 2018.
2018 Risk definitions:
RISK ON - Short DXY, Long XXX/USD, Short USD/XXX.
RISK OFF - Long DXY, Short XXX/USD, Long USD/XXX.
IF you found this analysis useful or thoughtful Likes/Comments/Follows are much appreciated!
Disclaimer: Oanda data shown. Material is educational only. Trade at your own risk!
EURUSD is in the middle of a big move to the upside after being held below resistance for two long years between 2015 and 2017. Price has broken above the resistance and since pulled back to verify old resistance was now support (see yellow arrow.) However, price has quickly approached major trend lines (red lines) that we should be cautious about. Understanding of the momentum behind the market after being held down for two years, we may have enough fuel to neutralize these trend lines soon.
Short Term (1-3 weeks) - We are in a solid uptrend but testing major overhead resistance. There is a high possibility we stay range bound between the .382 and .618 fib levels. Long trades only consideration at the moment. Unfortunately we will need to be patient and let the market decide what it wants to to. During this time path A, B or C will be defined and you will be updated.
Mid Term (3 weeks - 6 months) - We are in a known certified uptrend but the possibility of a pullback is likely being at major overhead resistance levels. The trend could resume but its just as likely we test support first. If support fails the pullback could be bigger than expected and play out a C scenario even though its very unlikely.
Long Term (6 months - Year)- The uptrend should continue to define itself. Target of 1.4 throughout 2018 into early 2019. Would need to see major weekly reversal signals and daily down trends to consider shorting EURUSD in 2018.
2018 Risk definitions:
RISK ON - Short DXY, Long XXX/USD, Short USD/XXX.
RISK OFF - Long DXY, Short XXX/USD, Long USD/XXX.
IF you found this analysis useful or thoughtful Likes/Comments/Follows are much appreciated!
Disclaimer: Oanda data shown. Material is educational only. Trade at your own risk!
