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Writer's picturePeet Serfontein

Analyst Thoughts: EUR/USD Medium-term

VIEW RETAINED FOR A MATURING BEAR TREND BETWEEN 1.0260 AND 1.0640.

  • The F/K* bear phase remains valid but seems to be in a mature stage of development.

  • Corrective type price action within the parallel channel and a diverging RSI, confirms the view of a downward correction, rather than a bear trend.

  • Any definite breach of R0* will activate the expected bull trend to R2 and R3

  • The recent F/S1 consolidation points to further interim downside towards K*, before completion (perforated line).

  • It is important that the market remains above line K* for the illustrated outlook to remain valid.

Target and Re-assessment Levels:

Important Levels: R0* and K*

Primary Trend and Target Levels: Gains to R3 off K*/S2

Monthly Range: R1*/K*

Prevailing Trend and Target Levels: Downside to K*, then gains to R1

Technical Rating: Medium


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