EURUSD Trying to reach Crucial 1.1600 level and Weekly 50EMA !
For a long while, EURUSD has been confined in descending wedge and currently hovering at the descending trendline of the wedge. By looking at the current weekly charts, the price shows thats its confined in a wedge. last year the price action formed head and shoulders pattern, adding to this the neckline was also broken to confirm the pattern completion. On A long term scale based on technical analysis the price is forecasted to continue its decline further below.
However in this particular case, EURUSD seemed to be focused on targeting the ascending trendline of the wedge before making its next move!. So what are the confluence factors supporting this statement? we will be analyzing them below
First of all, have a look at the current weekly charts. the price seemed to have bottomed for now and its slowly ascending higher. technically there is a channel present on the daily charts that needs to be broken in order to confirm this move. have a look at this image below of daily charts showing the price confined in the channel
For the channel to break on the daily charts, the price needs to break the ascending trendline and retest slightly before we can go LONG on this trade. our target would be focused on the weekly 50 EMA where also the 1.16000 level resistance lies!. We can opt to take this pair further LONG in the near future if the weekly EMA 50 breaks and could target 1.1700 level
Fundamentally this pair is under pressure as donald trump is pressuring the FED not to raise rates and 2019 seems is likely to be slow as FED might not raise the rates more than 2 times or it can be even less. the trade war seems also to be showing its effect in some major economic calendar events not in favor of the USD. To add to this, the EUR itself is not doing so great but on the balance of things taking this pair LONG seems to make sense for now.
Once the criteria are met i will post the update to this trade in the comments below. For i am just waiting for the channel to break on the daily charts before i can think to take action. stay tuned for any updates
However in this particular case, EURUSD seemed to be focused on targeting the ascending trendline of the wedge before making its next move!. So what are the confluence factors supporting this statement? we will be analyzing them below
First of all, have a look at the current weekly charts. the price seemed to have bottomed for now and its slowly ascending higher. technically there is a channel present on the daily charts that needs to be broken in order to confirm this move. have a look at this image below of daily charts showing the price confined in the channel
For the channel to break on the daily charts, the price needs to break the ascending trendline and retest slightly before we can go LONG on this trade. our target would be focused on the weekly 50 EMA where also the 1.16000 level resistance lies!. We can opt to take this pair further LONG in the near future if the weekly EMA 50 breaks and could target 1.1700 level
Fundamentally this pair is under pressure as donald trump is pressuring the FED not to raise rates and 2019 seems is likely to be slow as FED might not raise the rates more than 2 times or it can be even less. the trade war seems also to be showing its effect in some major economic calendar events not in favor of the USD. To add to this, the EUR itself is not doing so great but on the balance of things taking this pair LONG seems to make sense for now.
Once the criteria are met i will post the update to this trade in the comments below. For i am just waiting for the channel to break on the daily charts before i can think to take action. stay tuned for any updates
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