As per my previous postings, EUR has been taking a massive hit but it is looking likely that the end is near as a rally of sorts is likely going to happen over the next day or two.
Below are some key facts and thoughts to share.
1: EURUSD has a Bullish Divergency in every timeframe from Monthly to hourly indicating that USD has been MASSIVELY overbought since the EUR high back in July 2008.
2: A 5 wave short followed by a 5 wave long has happened and looks likely that a possible head and shoulders is forming so we're waiting for a 3 wave corrective move down to hit a key fib level of 0.50% or 0.618% and there will likely be a rally by the EUR of sorts for either a change in trend or a corrective ABC long for a retracement move since the 1.1300 mark (US Elections)
3. FOMC saw the Fed rate increase last week to 0.75% so demand for the USD should increase but given that USD is MASSIVELY overbought, I am unsure this will have long term impact on the USD to gain strength to dip below 1.000 mark - only time will tell.
Feel free to share your thoughts on my analysis as your views are welcome.
Happy Trading!
Below are some key facts and thoughts to share.
1: EURUSD has a Bullish Divergency in every timeframe from Monthly to hourly indicating that USD has been MASSIVELY overbought since the EUR high back in July 2008.
2: A 5 wave short followed by a 5 wave long has happened and looks likely that a possible head and shoulders is forming so we're waiting for a 3 wave corrective move down to hit a key fib level of 0.50% or 0.618% and there will likely be a rally by the EUR of sorts for either a change in trend or a corrective ABC long for a retracement move since the 1.1300 mark (US Elections)
3. FOMC saw the Fed rate increase last week to 0.75% so demand for the USD should increase but given that USD is MASSIVELY overbought, I am unsure this will have long term impact on the USD to gain strength to dip below 1.000 mark - only time will tell.
Feel free to share your thoughts on my analysis as your views are welcome.
Happy Trading!
Comment:
Long entry activated - Happy Trading!!!
Good luck with the trade.