The euro has traded this week with minor gains but has remained well below 21DMA.
In recent weeks, as the pair hits at the 1.1477 began tumbling, that’s where a sharp “shooting star” is traced out at 1.1398 levels.
Bears hampered the momentum of intermediary bounces to ensure the trend back in range; the pair has been oscillating between 1.1477 and 1.0509 levels from last couple of months.
Although the intraday bulls lined up as Euro retreated at 1.1015 levels, longs for long-term investors are not advisable as we don’t foresee any room for long term bulls - bears restrain short-term speculators potentials.
For now, the barriers would be – 1st at 1.1217, next at 1.1350 and finally at 1.1477 levels.
On a monthly plotting, it is currently holding strongly around supports at 1.1002 levels as the leading oscillators to evidence indecisive signals. Thus, we see no momentum in prevailing upswings.
(14) on weekly and monthly charts constantly making lower lows, which despite the on-going price bounces, the strength index has been bias.
This technical indication has started evaluating the selling momentum when the formed at 1.1398 levels by taking the computation of last 14 weeks periods the magnitude of recent gains to recent losses in an attempt to signify the overbought pressures (see weekly graph).
Same has been the case with curves, %D crossover on weekly has been maintained with every price dip again on weekly (Currently, leading oscillator has been quite indecisive).
Hence, in the long-run, we still project the pair below or around the cyclical lows of 1.09 by the end of Q3 2016.