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Eurusdidea

Can EUR/USD Bounce From it's strong trendline Support? EUR/USD is testing its strong trendline support zone. Fundamentally EUR/USD has the most possibility to drop below its trendline support. After breaking below 1.0800 will confirm the trendline support zone breakout. But as long as EUR/USD is above the trendline support zone, it still has chances to go upside technically. But different fundamental factors say, this time EUR/USD may drop [ below the trendline support zone. In my view, we should not be in hurry. W should wait. If EUR/USD creates a bullish-pin bar or Ukraine negotiates with Russia, in this case, the most possible scenario is EUR/USD may bounce back. But, if Russia and Ukraine tension accelerate more, I think EUR/USD must drop below the trendline support zone. Higher oil prices will also hurt the EUR. Yeah, as long as EUR/USD is above its strong trendline support zone, there is still hope. But if it breaks below 1.0800 daily of H4 candle, EUR/USD must die. On the downside, our first target will be 1.0650, and breaking 1.0650 final target is 1.0400. On the other hand, as long as EUR/USD is above the Trendline support zone, it may test the 1.1120 and finally 1.1500 price zone again.
by Gold_Trading_Expert
Will EurUsd fall towards parity in medium term?If you've read my analyses regarding EurUsd you know that I'm bearish on this pair and both my 1.14 and 1.08 targets were hit. With the price approaching 1.08 again we may ask ourselves if it will reverse or it will go lower. My opinion is that EurUsd has more to fall. Looking at the posted weekly chart we can see that the drop from 1.24 is impulsive and the trend is clearly down. At this moment 1.12 is strong resistance and with strong selling power, bears look determined to break the 1.08 support A break of this support could accelerate losses towards parity and as long as 1.12 is intact, 1.04 can be the first target for swing traders. That being said, I will look for selling opportunities around the 1.10 zone.
Short
by Mihai_Iacob
15
EURUSDThe Euro has rallied a bit during the trading session on Thursday but gave back the gains to form an inverted hammer. While this market continues to drop, the reality is that the strength of the candlesticks continues to shrink as well. This suggests that perhaps we could see this market try to make a turnaround rather soon, but we need to pay close attention to the 1.08 level as it is a major floor in the market. The 1.08 level caused the most recent bounce, so it does make a certain amount of sense that there will probably be support there again. Breaking below that level would attract a lot of attention, and perhaps even more selling but it is worth noting that it is at the top of a major consolidation area on longer-term charts. The market breaking below the 1.08 level would more likely than not offer choppy downward action. I do not think that it will be easy to bust through all of that noise underneath. On the upside, if we were to break above the highs of both Wednesday and Thursday, that would be the violation of a couple of inverted hammers, and that would of course be a very bullish sign. In that scenario, the market would initially target the 1.10 level, and then perhaps the 1.11 level after that. The 50 Day EMA is sitting at the 1.11 level as well, so that adds even more credence to the idea of resistance. In fact, that is the beginning of a “zone of resistance” that extends to the 1.12 level. In general, this is a market that needs to break through all of that in order to go higher for the longer term. As things stand right now, I believe this is a market that is going to be easier to short than to go long in, perhaps using rallies to find a bit of value in the US dollar, as the market continues to favor the greenback. Furthermore, the interest rate differential continues to favor the United States, and I think that will be a major driver here. This is a market that has been in a downtrend for ages, and even if it were to change directions for the longer term, we have a lot of work to do before you can be a buyer.
Short
by SmoothJB