The Euro strengthened significantly against the Russian Ruble mid-April. The pair surged unexpectedly 12.80% within four days, thus shooting past the upper boundary of a two-year channel near 78.00. This move proved to be a false breakout, as the pair returned within this channel and began easing its strong bullish momentum.
As apparent on the chart, the Euro is gradually approaching the bottom boundary of a shorter-term channel formed in December, 2016. Given that the pair is located below the 55-, 100– and 200-period SMA, its is likely that the current bearish momentum continues until this junior channel and the 38.20% Fibonacci retracement are reached near 71.55 this month.
At the time, technical indicators on the daily time-frame would be located in the oversold territory, thus pointing to a reversal and subsequent surge in price.
As apparent on the chart, the Euro is gradually approaching the bottom boundary of a shorter-term channel formed in December, 2016. Given that the pair is located below the 55-, 100– and 200-period SMA, its is likely that the current bearish momentum continues until this junior channel and the 38.20% Fibonacci retracement are reached near 71.55 this month.
At the time, technical indicators on the daily time-frame would be located in the oversold territory, thus pointing to a reversal and subsequent surge in price.