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#EURUSD The End Of The Bearish Euro?

FX:EURUSD   Euro Fx/U.S. Dollar
Alright everyone this is a pretty crazy post because I am going to try and predict the end of the bearish EUR/USD             .
USD/CAD             is the one that helped me come to this analyzation and the monthly chart on the EUR/USD             .

As you can see USD/CAD             has been at an uptrend since 2013 and finally broke support around 1.23410 level after 11 weeks of consolidation on the weekly chart.

I also predicted this drop with USD/CAD             a few months ago on TradingView.com/u/PipsUniversity
Now with USD/CAD             it looks like it is going to drop to atleast 1.17180 around 500'ish pips, now when USD/CAD             drops EUR/USD             goes up.

They are extremely negatively correlated, now if you look at the EUR/USD             monthly chart you can see we have two candles that are indecisive after 12 months of bearish movement.

We have extreme oversold conditions right now and the weekly is showing signs of bullish momentum based off the last weeks candle and then we have true resistance at around 1.10500'ish level.

We have major divergence on RSI and it looks ready for a massive move to the upside.

This is why understanding currency correlations is so important, you can predict 2 extreme moves by looking at only 1 pair.

That's what I love, knowing how to make money without even looking at the chart.
When it breaks this resistance it will most likely pull up to the 1.18260 level for around 700-800 pips.

There is no clear entry on it yet for a heavy position however the 2hr             chart is forming a nice uptrend, but still there is no trade open yet.

I have waited for this movement for a while as you all know so I'm excited to see what happens.
Once this happens it will be easy money for a few months, buying EUR/USD             & selling USD/CAD            

Have a great rest of the week and remember the trend is your FRIEND :)

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TheShakeOut
2 years ago
Interesting analysis. I am waiting for more confirmation but it seems likely, the euro is showing strength.
Demand is swamping supply on the EURUSD
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PipsUniversity TheShakeOut
2 years ago
Yeah it's too early to take a position based on this weekly chart, but it will eventually go up very soon and when it does it will be a nice move to the upside that you can either swing on faster timeframes or just buy and hold. Thanks for the reply! :)
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I like this analysis, a trend change for the USD is inevitable and I agree that USDCAD has shown the first clear signal that a change is coming. If a USD bear leg develops the Euro might be a good place to play it, my only concern would be fundamentals. The ECB is still committed to easing which might keep a lid on Euro gains, however if we get a clear chart signal I will trade it.
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PipsUniversity SteveTobin
2 years ago
Yeah Steve thanks for the comment, fundamentals could have a major roll in this, however a nice resistance break on the weekly would be a good enough signal for me to assume it is ready to go up, we shall see! :)
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