You are here: Home > articles > Forex > Technical Analysis – EURUSD rebounds to challenge the neckline of triple bottom formation
Technical Analysis – EURUSD rebounds to challenge the neckline of triple bottom formation
July 9, 2018 7:26 amVideo
Latest News
- Trading Signals for EUR/USD for May 3-5, 2024: sell below 1.0803 (overbought – 5/8 Murray) May 3, 2024
- Trading Signals for GOLD for May 3-5, 2024: sell below $2,320 or below $2,300 (21 SMA – 200 EMA) May 3, 2024
- Technical Analysis – GBPUSD advances above descending trendline May 3, 2024
- USD experiences day X May 3, 2024
- Bitcoin licks wounds as Fed comes on the rescue – Crypto News May 3, 2024
- GBP/USD: trading plan for the US session on May 3rd (analysis of morning deals). The pound is preparing to get out of the May 3, 2024
- EUR and GBP may drop May 3, 2024
- EUR/USD: trading plan for the US session on May 3rd (analysis of morning deals). US data will be the key moment of the week May 3, 2024
- USD/JPY: Simple trading tips for novice traders for May 3rd (US session) May 3, 2024
- GBP/USD: Simple trading tips for novice traders for May 3rd (US session) May 3, 2024
- Video market update for May 03, 2024 May 3, 2024
- EUR/USD: Simple trading tips for novice traders on May 3rd (US session) May 3, 2024
- Could the BoE adopt a more dovish stance on Thursday? – Preview May 3, 2024
- EUR/USD. May 3rd. Bulls don’t give up without a fight May 3, 2024
- GBP/USD. May 3rd. Bears are counting on a strong US labor market May 3, 2024
- Market Comment – Stocks enjoy Fed-induced bounce as dollar slips ahead of NFP May 3, 2024
- Weekly Forex Outlook: 03/05/2024 – BoE and RBA decisions headline a calm week May 3, 2024
- Week Ahead – BoE and RBA decisions headline a calm week May 3, 2024
- USD/JPY: trading tips for beginners for European session on May 3 May 3, 2024
- GBP/USD: trading tips for beginners for European session on May 3 May 3, 2024
EURUSD has been outperforming over the last three weeks, following the touch on the 1.1510 support level on June 21. Also, during Friday’s session, the common currency successfully surpassed the 38.2% Fibonacci retracement level of the upleg from 1.0340 to 1.2550, around 1.1707. The short-term technical indicators are bullish and point to more strength in the market.
The positive bias in the near term is supported by the deterioration in the momentum indicators. The %K line of the stochastic oscillator has risen sharply into overbought levels. Moreover, the RSI is holding above the 50 level and is moving north, while the MACD oscillator is approaching the bullish territory and lies above its red-trigger line.
In the wake of positive pressures, the market could meet resistance at the 1.1840 barrier, which is the neckline of the triple bottom formation. The significant troughs stand within the 1.1510 – 1.1530 zone. A jump above this key level could challenge the 1.2000 psychological barrier, which stands near the 200-day simple moving average (SMA).
Conversely, a move to the downside, below the 38.2% Fibonacci and the 20- and 40-SMAs could see immediate support at the 1.1510 – 1.1530 area. Further losses could drive the price towards the 50.0% Fibonacci of 1.1450, forcing the continuation of the negative outlook in the medium term.
Overall, the world’s most traded currency has been developing within a reversal pattern (triple bottom). Near-term weakness is expected to remain as long as price action takes place above 1.1530 and below the neckline (1.1840).
Related Posts: