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Writer's picturePeet Serfontein

Analyst Thoughts: EUR/USD Medium-Term

OUR PERSPECTIVE REMAINS LEANING TOWARDS A SUBDUED BULLISH TREND IN PRICE MOVEMENTS, YET IT'S IMPORTANT TO NOTE THAT THE OVERALL PRICE DYNAMICS STILL REQUIRE FURTHER DEVELOPMENT.


  • Our current outlook suggests a modest bullish trend towards 1.1280, followed by a potential retreat to 1.0610, which continues to hold merit.

  • Looking ahead, we anticipate conditions to fluctuate broadly between points P and Q, representing the upper and lower limits of the megaphone pattern, respectively. This pattern signifies escalating volatility and enlarging price fluctuations as the trend lines diverge.

  • It is noteworthy that the price is currently testing its 200-day simple moving average, potentially serving as a significant support level.

  • Presently, the price movement appears to be engaged in wave c, hinting at the possibility of evolving into a complex, overlapping structure.

  • The threshold of 1.0945 remains critical for our forecast. Surpassing 1.1280 could unveil further upside prospects, whereas dropping below 1.0610 would align with our projected price behaviour.

  • In essence, the unfolding price dynamics necessitate additional evolution to establish a clear trend direction.

  


Target and Re-assessment Levels:

Important Levels: 1.0945 and 1.0610

Primary Trend and Target Levels: Gains to 1.1280, then down to 1.0610.

Monthly Range: P & Q

Prevailing Trend and Target Levels: Gains towards 1.1280

Technical Rating: Medium



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