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Writer's picturePeet Serfontein

Analyst Thoughts: EUR/USD Medium-term

VIEW RETAINED FOR A MATURING BEAR TREND BETWEEN 1.0640 AND 1.0360

  • 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 F*/R0 will activate the expected bull trend to R2 and R3.

  • The recent upward move from K* to F* has overlapping traits, pointing to further interim downside towards K*, before completion (perforated line).

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

Target and Re-assessment Levels:

Important Levels: F* and K*

Primary Trend and Target Levels: Gains off to R3

Monthly Range: R1*/K*

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

Technical Rating: Medium


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