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Writer's picturePeet Serfontein

Analyst Thoughts: EUR/USD Long-Term

VIEW MAINTAINED FOR AN EMERGING FALLING WEDGE PATTERN, INDICATING UPSIDE POTENTIAL.

  • The long-term P*Z* wedge pattern seems incomplete with further possible overlapping A,B,C and W,X,Y phases, as illustrated.

  • The A,B,C bull phase off S1 is completing the expected B phase within the R1/S0 range. Phase C could already have started with the recent sharp reversal of S0.

  • The potential for a bearish reversal at the indicated P/R2* cluster resistance will activate the final W,X,Y downside to Z*.

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

  • R2* is where the A= C is a common target area.

Target and Re-assessment Levels:

Pivotal Levels: R2* and Z*

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

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

Technical Rating: Medium



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