Bullish Bias Remains As EurUsd Closes Above Multi Year Range
The weekly close was higher than previous weeks close and it confirms the bullish
bias for this pair, as it seems to be breaking out of a multi year range. I have drawn
Pitchfork to highlight when price steps into overbought territory and moves above
the upper band. This territory increases risks of taking longs on higher timeframe.
On lower timeframe longs are still preferred on pullbacks,
using daily, H4 or H1 timeframes. Looks for pullbacks toward the daily and weekly
pivot points, wait for support to hold and get long, aiming for R1 or R2 on each timeframe.
Since price closed below the weekly R1 we might see some exhaustion or indecision
at this point, which is quite normal when price steps into new territory. I still think
Monthly R3 is within reach before the end of the month, on monday, the last trading day
of July, else observe the new monthly PP for august as it arrives (and R1,R2,R3) to adjust
the targets for your positions.
Resistance on Weekly Timeframe:
Monthly R3 / Upper Pitchfork band: 1.1861
38,2 FIB of large 2014-17 Swing: 1.1738
Support on weekly tf:
1.1712 (previous high)
Monthly R2 1.1653
Resistance on Monthly timeframe:
Lower Kumo Cloud on Monthly tf: 1.2020
Yearly R2: 1.2092
50% FIB retracemnt of swing May 2014- Jan 2017: 1.2169
bias for this pair, as it seems to be breaking out of a multi year range. I have drawn
Pitchfork to highlight when price steps into overbought territory and moves above
the upper band. This territory increases risks of taking longs on higher timeframe.
On lower timeframe longs are still preferred on pullbacks,
using daily, H4 or H1 timeframes. Looks for pullbacks toward the daily and weekly
pivot points, wait for support to hold and get long, aiming for R1 or R2 on each timeframe.
Since price closed below the weekly R1 we might see some exhaustion or indecision
at this point, which is quite normal when price steps into new territory. I still think
Monthly R3 is within reach before the end of the month, on monday, the last trading day
of July, else observe the new monthly PP for august as it arrives (and R1,R2,R3) to adjust
the targets for your positions.
Resistance on Weekly Timeframe:
Monthly R3 / Upper Pitchfork band: 1.1861
38,2 FIB of large 2014-17 Swing: 1.1738
Support on weekly tf:
1.1712 (previous high)
Monthly R2 1.1653
Resistance on Monthly timeframe:
Lower Kumo Cloud on Monthly tf: 1.2020
Yearly R2: 1.2092
50% FIB retracemnt of swing May 2014- Jan 2017: 1.2169