Decisive point for Eur/USD

Updated

We have had a 4th straight rejection at 1.135 resistance but it does not mean it will certainly hold. RSI divergence is showing uptrend and we have not gone below MA50 on H4 chart which makes me believe that we will visit 1.1385 resistance which if broken 1.142 comes next. Tomorrow we should see after jobless claims report if we go below MA50 on H4 and finally reach MA200 on H4 which is around 1.12-1.195. Only if price goes below MA200 on H4 - we will return back to selling EUR/USD.

Best is to stay on sidelines and watch price action tomorrow joining the trend based on whether it breaks up through resistance or goes below support.

Note

Price broke up through resistance indicated and we are in a trend up. Now we can only make a short term short 1.148-1.15 aiming at 1.139 (support - previous resistance), where buying may resume as we are aiming 1.16-1.18 medium term(unless support breaks).

Note

Price keeps on a steady rise and is extending the top to 1.15-1.1515. Keep in mind if 1.1515 breaks next target is 1.155-1.157. There is no indication yet for a reversal or retracement. The next 3 days may provide new hints after the news release (especially after Friday EU reports).

Erland

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