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EURUSD Analysis: Near-term bounce, mid-term bullish


Heavily influenced by Dollar move, the shared currency Euro remains bullish for two days in a row. Dollar weakens towards 100.65 (.DXY chart) while the Euro rises towards 1.068 vs the USD. Currently $EURUSD pair stands at 1.06722 in Friday Asia trading session, waiting for the last Trading day of the week to kick-in in Europe. This week has been once again busy with FED speeches, ECB meeting, Dollar moves and solid economic data, some of the key influencers for this pair in discussion.

On daily technical chart, pair is forming an inverse Head and Shoulder pattern, with right Head in formation. Expect the pair to bounce a bit as indicated by ABC waves. 1.07 level can show some resistance before $EURUSD finally approaches 1.08 level to complete inverse H&S. Relative Strength Indicator (RSI) is at median range indicating pair has still enough room for a bullish streak. Fibonacci retracement levels for 2017 low-high move (grey dotted lines towards the right), was well smashed (50% fib and 38% fib levels broken upwards just in last two days)! It remains to be seen if $EURUSD continues upward strength today as well, or takes a breather as explained earlier (ABC bounce).

Overall, the pair remains range bound between 1.05125 and 1.08007 levels on the daily chart.

#EURUSD