Good morning traders! Today we want to share with you an idea that we have in the EUR / USD for the long term. Keep in mind that it is a vision on a monthly chart, so it probably has a time horizon of years.
🔸What does this idea imply?
🔸This pair generated a great bullish momentum from 2000 to 2008, rising approximately 95%. After this abrupt rise, we see a great corrective process that lasted from 2008 to the present. Although the correction lasted a long time, it is consistent with the previous impulse.
🔸The interesting thing about this situation is that recently the price managed to penetrate upwards to the Descending Trendline that corresponds to this downtrend.
🔸This gives us indications of a potential bullish move in this pair.
🔸Taking the distance of the first impulse, and cloning it from the base of the potential new impulse, gives us a theoretical target of AB = CD greater than the zone of historical highs, which would be somewhat impressive to see a movement of such magnitude.
🔸In any case, we must take into account the areas of lesser resistance that are found during the path. In the Weekly Chart we can see how the price after the breakout of the trendline generates a consolidation, which under our criteria is about to be broken to the upside. The next resistance zone is at the 1.2500 level, which is approximately 500 pips from the current point.
🔸What does this idea imply?
🔸This pair generated a great bullish momentum from 2000 to 2008, rising approximately 95%. After this abrupt rise, we see a great corrective process that lasted from 2008 to the present. Although the correction lasted a long time, it is consistent with the previous impulse.
🔸The interesting thing about this situation is that recently the price managed to penetrate upwards to the Descending Trendline that corresponds to this downtrend.
🔸This gives us indications of a potential bullish move in this pair.
🔸Taking the distance of the first impulse, and cloning it from the base of the potential new impulse, gives us a theoretical target of AB = CD greater than the zone of historical highs, which would be somewhat impressive to see a movement of such magnitude.
🔸In any case, we must take into account the areas of lesser resistance that are found during the path. In the Weekly Chart we can see how the price after the breakout of the trendline generates a consolidation, which under our criteria is about to be broken to the upside. The next resistance zone is at the 1.2500 level, which is approximately 500 pips from the current point.