EUR/USD: Recent Bullish Momentum Limited to 1.1670.
EUR/USD rebounded sharply over the last 8 trading days after having fallen to the 1.1300 level. The pair reached 1.1640 on Friday and closed well above the psychological 1.1600 mark.
The common currency is currently up by 325 pips against the Greenback from its recent low at 1.1300 within a fairly short amount of time.
The sharp rebound may also be attributed to the easing of the Turkey Crisis or Trump's offer to buy Italian Bonds next year as Italian administration is looking for ways to refinance its debt.
Besides, the Fed Chairman's comments on last Friday did little to help the Greenback.
However, despite the recent bullish momentum, further gains might be limited to 1.1670-1.1680 area.
Price is currently heading towards the convergence of the upper and lower lines of the symmetric triangle where it could face stiff resistance. The area to watch out for would be 1.1650-1.1670 and if price fails to break this area strongly, EURUSD will go downwards towards 1.1550 and 1.1470.
It's also interesting to note that price is now closer to the Red Line in the chart, which acted as a support previously and hence, this level might cap the any further gains in the Euro.
According to my analysis, the recent bullish move is merely a correction and only a strong break of 1.1740 would nullify the bearish bias.
Trading set-up for the Week:
It would be wise to watch how the price behaves around the 1.1650-1.1670 area. If signs of reversal are to be found, short entries with targets towards 1.1550 and subsequently 1.1470 would be valid.
Stops should be placed above 1.1750, which represents the upper line of the symmetric triangle.
The common currency is currently up by 325 pips against the Greenback from its recent low at 1.1300 within a fairly short amount of time.
The sharp rebound may also be attributed to the easing of the Turkey Crisis or Trump's offer to buy Italian Bonds next year as Italian administration is looking for ways to refinance its debt.
Besides, the Fed Chairman's comments on last Friday did little to help the Greenback.
However, despite the recent bullish momentum, further gains might be limited to 1.1670-1.1680 area.
Price is currently heading towards the convergence of the upper and lower lines of the symmetric triangle where it could face stiff resistance. The area to watch out for would be 1.1650-1.1670 and if price fails to break this area strongly, EURUSD will go downwards towards 1.1550 and 1.1470.
It's also interesting to note that price is now closer to the Red Line in the chart, which acted as a support previously and hence, this level might cap the any further gains in the Euro.
According to my analysis, the recent bullish move is merely a correction and only a strong break of 1.1740 would nullify the bearish bias.
Trading set-up for the Week:
It would be wise to watch how the price behaves around the 1.1650-1.1670 area. If signs of reversal are to be found, short entries with targets towards 1.1550 and subsequently 1.1470 would be valid.
Stops should be placed above 1.1750, which represents the upper line of the symmetric triangle.
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