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Writer's picturePeet Serfontein

Analyst thoughts: EUR/USD Long-term

VIEW RETAINED FOR A MATURING WEDGE PATTERN BETWEEN 1.1630 AND 0.9510.

  • The long-term P*Z* wedge formation seems incomplete with further possible overlapping ABC and WXY phases, as illustrated.

  • The ABC bull phase off S1 has completed the expected B phase within the R1/S0 range. Phase C should now target line P*.

  • The potential for a bearish reversal at P* will activate the final W,X,Y downside to Z*/S1 cluster support.

  • A long-term bottom around Z* is expected to initiate a multi-year impulsive bull trend to R3 and R4.

  • Any definite break of P* will signal the end of the PZ bear phase and activate the bull trend to R3/R4.

Target and Re-assessment Levels:

Important Levels: P* and Z*

Primary Trend and Target Levels: Overlapping downside to S1/Z, followed by gains to R3/R4

Prevailing Trend and Target Levels: Gains off S0 to P*

Technical Rating: Medium


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