The EUR/USD has rallied aggressively today and has succeeded to erase the last two day’s losses, has jumped above the 1.0800 psychological level and is very close to reach the 1.0828 previous high. Could find temporary resistance at the mentioned previous high, but the perspective is bullish, so a further increase is expected in the coming period.
The rate is moving sideways on the short term, but I hope that we’ll have a clear direction very soon, technically the price is expected to start a larger upside movement in the coming period, maybe you’ll have another chance to go long on this pair if the rate will validate a chart pattern.
Price has increased sharply today and the US dollar index has fallen aggressively today and has ignored the 99.84 static support, the index is seeking for strong support, so is somehow expected to drop further in the coming period, we have a strong support area between the 99.12 and the 99.24 previous low, remains to see how will react when will touch this area, only an impressive bounce back will help the USD to appreciate again versus its rivals.
The rate has resumed the upside movement after the minor decrease, has jumped much above the 1.0781 last week high and looks motivated to reach new highs in the coming period after the breakout from the major descending pitchfork’s body. I’ve said that the sentiment could change drastically if the rate will have enough energy to take out the major dynamic resistance from the sliding line (descending dotted line), you can see that the rate has come back to retest the outside sliding line.
Has managed also to climb again inside the minor ascending pitchfork’s body and has succeeded to break above the Inverse Head and Shoulders neckline, the price will climb much higher in the coming weeks if the chart pattern will be confirmed these days.
We could have another buying opportunity if the rate will close above the neckline and if will come back to test the confluence area formed at the intersection between the lower median line (lml) with the neckline.