Potential Aggressive C entry that will lead to 1.14 again
$EURUSD was the first among the majors that defied the U.S dollar last week and rallied 150 pips after hitting support zone and the daily 50 SMA line near 1.11.
Although it was rejected towards the end of the week by the 50 and 200 SMA lines (240 minutes), it managed to close above the daily 200 SMA line, just below 1.12, perhaps providing a signal that it intends to continue higher (read more below)
With $DXY near resistance zone (see linked idea and more info in this week's newsletter), if $EURUSD will climb back up above 1.12 (very close to), and will manage to overcome the 2 SMA lines resistance, it could lead to a rally towards 1.14 to re-test resistance zone and complete a bearish Bat pattern (see purple pattern).
The other bullish scenario, is the one from last week, and it will be relevant if $EURUSD will decline towards 1.1.
1.1 is a major support zone and also the completion zone of a bullish Gartley
Based on $DXY bearish setup and $EURUSD's price action, I think that the first scenario is more likely and that we will see $EURUSD near 1.14 by the end of the week. A close below 1.11 will violate this scenario.
Summary:
$EURUSD>1.12 -> Could lead to 1.14
$EURUSD Could lead to 1.1
1.1 - Potential buy zone (Bullish Gartley)
1.14 - Potential sell zone (bearish Bat)
This analysis is part of the Weekly Markets Analysis newsletters
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Although it was rejected towards the end of the week by the 50 and 200 SMA lines (240 minutes), it managed to close above the daily 200 SMA line, just below 1.12, perhaps providing a signal that it intends to continue higher (read more below)
With $DXY near resistance zone (see linked idea and more info in this week's newsletter), if $EURUSD will climb back up above 1.12 (very close to), and will manage to overcome the 2 SMA lines resistance, it could lead to a rally towards 1.14 to re-test resistance zone and complete a bearish Bat pattern (see purple pattern).
The other bullish scenario, is the one from last week, and it will be relevant if $EURUSD will decline towards 1.1.
1.1 is a major support zone and also the completion zone of a bullish Gartley
Based on $DXY bearish setup and $EURUSD's price action, I think that the first scenario is more likely and that we will see $EURUSD near 1.14 by the end of the week. A close below 1.11 will violate this scenario.
Summary:
$EURUSD>1.12 -> Could lead to 1.14
$EURUSD Could lead to 1.1
1.1 - Potential buy zone (Bullish Gartley)
1.14 - Potential sell zone (bearish Bat)
This analysis is part of the Weekly Markets Analysis newsletters
To read more interesting technical reviews - goo.gl/0xn62d
To subscribe to the newsletters - goo.gl/HXjCPV
