EXY
EXY Bearish MomentumAfter a clear Head and Shoulders breakout, the price is coming back to the previous support now converted in a resistance. The expectation is to push the price in order to find new Low Lows.
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EURUSD LONG, DXY fails, EXY continuesEURUSD is in difficult territory though I start to become more bullish. Reasons why:
Dollar index:
Chart: broke structure, it may show a reversal pattern (H&S) so no confirmation yet both bullish or bearish, nevertheless, it is still below structure so that is bearish.
Fundamentals: USA tends to surpluses, reduce spending, all bad for economy so usd lower?
EUR index:
Chart: still in short term 5 wave and no clear reversal signs close to resistance levels. Short term bullish.
Fundamentals: brexit uncertainty remains, though political environment improves. Tend to deficits again and monetairy policy is reducing so all slightly more bullish.
EUR/USD:
Chart: F-flag forming. moving higher in F flag.
EXY EURO INDEX BULLISHSeems like a Inv.HnS in the Index.
DXY seems like retesting a descending triangle formation with limited upside and big divergence in the RSI.
Both premises together make me deduct a probable strenghtening of the EURO.
Also, French elections + Eurostocks sentiment are good.
We can ride this uptrend while it lasts.