EURUSD: The long-term picture. New high above 1.2600?
Since the March 2020 1.0640 bottom, EURUSD has been on a non-stop bullish run, turning even parabolic (and overbought on RSI = 76.416, MACD = 0.010, ADX = 60.087) on the 1D chart. Since our firm focuses on long-term investments we tried to locate technically (besides the obvious fundamental reason regarding the Fed's stimulus package) and have turned to the 1M (monthly) chart.
As you see EURUSD's long-term pattern is bullish and it's a Channel Up (the bold dashed lines). A complementary pattern that is also useful on its long-term charting is a Parabolic Channel (blue lines).
The recent March 1.0640 bottom was made exactly on the Channel Up's Higher Low trend-line, so technically the current rebound is valid. It even broke above the 1M MA50 (blue line). The last rebound on the Channel's Higher Low trend-line was on February 2017 and (following Trump's USD depreciation attempts) it topped and got rejected on the 1M MA200 (orange trend-line). So the obvious next target for EURUSD is the MA200, but we expect it to go even higher.
The reason lies on the RSI, which as you see on the chart, every time it made a Higher Low (flag) following a market bottom (circle), EURUSD moved to a Higher High. Of course it has to be said that this time (bottom/ higher low) have been much lower within the Channel Up/ Parabolic Channel than the previous too occasions.
That being said, our portfolio is strongly bullish on EURUSD on the long-term. We will follow with quarterly updates on this one.
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As you see EURUSD's long-term pattern is bullish and it's a Channel Up (the bold dashed lines). A complementary pattern that is also useful on its long-term charting is a Parabolic Channel (blue lines).
The recent March 1.0640 bottom was made exactly on the Channel Up's Higher Low trend-line, so technically the current rebound is valid. It even broke above the 1M MA50 (blue line). The last rebound on the Channel's Higher Low trend-line was on February 2017 and (following Trump's USD depreciation attempts) it topped and got rejected on the 1M MA200 (orange trend-line). So the obvious next target for EURUSD is the MA200, but we expect it to go even higher.
The reason lies on the RSI, which as you see on the chart, every time it made a Higher Low (flag) following a market bottom (circle), EURUSD moved to a Higher High. Of course it has to be said that this time (bottom/ higher low) have been much lower within the Channel Up/ Parabolic Channel than the previous too occasions.
That being said, our portfolio is strongly bullish on EURUSD on the long-term. We will follow with quarterly updates on this one.
** If you like our free content follow our profile to get more daily ideas. **
Comments and likes are greatly appreciated.
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www.investingscope.com
Over 65% accuracy on Private Signals Channel.
Over 15% return monthly on our Account Management Plan.
Account RECOVERY services.
Free Channel: t.me/investingscopeofficial