Recently we've seen some odd behavior by the Euro in most currencies, but in great timing it has left us a few clues to determine its true direction for a long and profitable trade.
Right now you can see in the 4hr chart, I've outlined a curve under the candlesticks . The curve represents the gradual change of the price starting the beginning of this month (Feb). Now we recently broke new high's yesterday and due to an overbought RSI (and other indicators on other platforms), we were only hoping for a pull back. This pullback is important for the saucer formation for it's potential hasn't been exuded yet. Because this pullback reached the top of the support we can assume the 78% is a good support and any closing beyond 1.24490 would be a hint towards it's next leg.
The retracement slid to the 78% region. This region also happens to be support since January 24th; and the RSI is about to reach it's resistance as well. With the RSI being divergent, I can expect the Euro to be overbought for a few days within the next trading period. I believe its good to mention the 20 EMA is providing primary support to this uptrend.
Hopefully this provided some idea as to where the Euro plans on going. There's a lot of potential for this currency to make annual highs, but of course we just have to wait for confirmation in these next few session hours. After that, we can determine our trade for next week if plausible.
Right now you can see in the 4hr chart, I've outlined a curve under the candlesticks . The curve represents the gradual change of the price starting the beginning of this month (Feb). Now we recently broke new high's yesterday and due to an overbought RSI (and other indicators on other platforms), we were only hoping for a pull back. This pullback is important for the saucer formation for it's potential hasn't been exuded yet. Because this pullback reached the top of the support we can assume the 78% is a good support and any closing beyond 1.24490 would be a hint towards it's next leg.
The retracement slid to the 78% region. This region also happens to be support since January 24th; and the RSI is about to reach it's resistance as well. With the RSI being divergent, I can expect the Euro to be overbought for a few days within the next trading period. I believe its good to mention the 20 EMA is providing primary support to this uptrend.
Hopefully this provided some idea as to where the Euro plans on going. There's a lot of potential for this currency to make annual highs, but of course we just have to wait for confirmation in these next few session hours. After that, we can determine our trade for next week if plausible.
