EURUSD has held its ground this week and closed at its week highs not looking back from 1.1030 where it opened last Monday. In our previous posts we noted that holding above 1.10-1.1030 would lead to a move towards 1.1130 and higher. Resistance at 1.10-1.1030 area got broken, back tested and then broken again. What else do we need for a clearer bullish sign?
Black lines- wedge pattern
This wedge pattern has been noted several times in previous analysis. Our first target was the 38% Fibonacci retracement once the resistance at 1.10 was broken. Now we are moving closer to our next target at the 61.8% Fibonacci retracement level. Trend is bullish in the short-term.
As we noted last week we had a weak bullish signal by the cross of the tenkan-sen above the kijun-sen. We also said that a break above the Daily cloud resistance would strengthen this signal. And so it did break above the cloud for the first time since June. Daily trend is changing to bullish. Bulls now need to hold above the Kumo (cloud) support. A break below 1.10 would be very bearish. The material has been provided by InstaForex Company – www.instaforex.com
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