Durable Goods update: Its going Long on EURUSD!I'm here with Durable Goods event on EURUSD and it'll go ! I'll keep you updated as this beast goes by.
CORE
Long-Term Decision PointI'm not going to make a call either way on this one but we should be able to clearly see the choice that is made within the next few days. The price has returned to that orange resistance trendline that forced it out of its purple channel late last year. On the RSI, we can see that the orange resistance trendline is potentially going to be broken. Failing that, a bearish divergence would be produced and it might be some time before the price attempts to break this trendline again. On the other hand, if the bullish scenario happens, we could see some seriously bull action in the medium to long-term.
Bearish Forecast Becoming Reality Sooner than ExpectedIt looks like we're coming in for a third contact with the lower mid-term support when every other contact with these purple lines has been a single touch before traversing to the other one. It seems obvious that the orange resistance is coming into play even though it's a good distance away from the current price.
The RSI has broken down from the steeper gradient that I predicted, however, I don't think we'll see fireworks before it breaks that second, lower gradient that was actually in play rather than just predicted. The price has been propped up for almost a week by that long-term 0.236 (372.74) fib retracement. That looks like it's about to yield with the price getting intimate with it as I type. Once broken, I'd forecast a fairly strong bounce off the mid-term 0.5 (364.27) fib retracement and mid-term support (purple) before meeting resistance from the fib lines and finally breaking that mid-term support. However, if the RSI manages to bounce off that second gradient, there could be some upside left in the coin yet. Buckle up.
