EURO breaks major resistance!
Previous article : A solid break above and retest of 1.0900 can see further upside for this pair with 1.0950 and then 1.1000 being the next short/medium term targets.
What a week for EUR/USD which apart from minor retracements as price took a little breather has not stopped this sprint from 3 year lows back to the key resistance level of 1.1000 and smashing through!
Five consecutive Bullish daily candles and a current Bullish engulfing weekly candle explain the story of this pair this week, but why has this happened?
The EURO has been strong against all of its counterparts and advanced against the USD as soon as the market opened this week but a sell off on the USD this week has also played its part and has given the EURO bulls freedom to take this pair it seems wherever it wants!!
Price breaking through the resistance level of 1.1000 and showing no regard for this level or the Daily trend line also broken looks like there could be no end to this run but, this is normally where we see a change…
EUR/USD has printed new monthly lows and as highlighted in the community now found a new bottom for the new weekly and daily bull trend we have just started. New bull trend means exactly what the name says ….TREND. To trend we need to see higher highs and higher lows so while the EUR/USD rocket looks set to hit the moon lets put are realistic thinking caps on and think about this logically. In order to go higher we need to come lower so we can soon expect to see a retracement on this new trend soon.
EURO has had good data released this week but the bigger economic picture looks worrying for the EURO zone and this can come into play soon with EURO pairs. USD has had a sharp sell off within the last two days with the DXY (Dollar index) seeing a large decline with no retracement means we could see the EUR/USD retracement come soon.
Levels to watch…
Major resistance has been broken at 1.1000 and we can expect a retest of this level before further upside with 1.09050 also being achievable to find some ground before another leg higher.
Should the current bull trend continue we can expect 1.1090 to be the level of resistance to slow this bullish charge.