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[USDEUR] U.S. DOLLAR Drops Against The EURO (LongTerm Analysis)The U.S. DOLLAR will drop against the EURO according to the signals that I am reading coming from the charts.
I am looking at it long term, this is the weekly time frame. Take a look at the chart here:
I am looking mainly at divergence, this signal works light on conventional assets charts. Thanks to these signals, I spotted the APPLE and SPX crash, let's take a closer look at them.
USDEUR Weekly Analysis by Alan Masters
First we look at the bearish divergence that formed on the RSI from Sep '14 to Dec '16. We also have bearish divergence on the MACD from March '15 to Dec '16. After these divergences showed up, USDEUR had a 17%+ drop.
Now we are looking at a similar scenario. We have bearish divergence on the MACD and RSI, you can see those marked on the chart. I believe these signals are indicative of an upcoming drop, this can be as much as 7%. This is clearly illustrated on the chart.
RSI is in a downtrend and the MACD as well since 2015.
A different perspective
I used divergence as it was the first signal that I spotted on these charts, but if an event is strong enough, there are normally other signals that will confirm it and add additional strength.
Here are some examples:
Chart 1:
Chart 2:
You can find targets on chart... Thanks a lot for reading all the way.
Note: This information is for learning and entertainment purposes only.
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Namaste.
