"No warning can save people determined to grow suddently rich" - Lord Overstone

  • 54 mins U.S. Money Market Funds Post Highest Outflows Since 2011
  • 2 hours Hedge Funds Turn Bearish On The Australian Dollar
  • 3 hours Tech Unicorns Are Taking Over European Stock Markets
  • 4 hours Trump Orders “Space Force” With Zero Support
  • 6 hours How Long Will The Gold Rout Last?
  • 8 hours The Wild Card In The New Eurozone Budget Agreement
  • 24 hours Why Investors Must Look At Small-Cap Stocks
  • 1 day Banking Major Pays $42M For Misleading Customers
  • 1 day Rookie Daytrader Accidentally Makes $10 Million Profit
  • 1 day Flying Cars Are No Longer Science Fiction
  • 1 day The Internet Fights Back As EU's Controversial Copyright Bill Passes
  • 1 day Is Gold Preparing For A Reversal?
  • 1 day Tech Giants Under Fire For Facial Recognition
  • 2 days 4 Reasons Why Gold Investors Should Keep A Cool Head
  • 2 days Hackers Lift $30 Million In Crypto From South Korean Exchange
  • 2 days Tax Reform Could Push U.S. Profits Abroad
  • 2 days Pot Stocks Soar As Canada Legalizes Cannabis
  • 2 days How Chinese Investors Could Send The Tech Boom Into Overdrive
  • 2 days U.S. Market Growth Weighs On The Global Economy
  • 2 days The Trials And Tribulations Of A $4 Billion Blockchain
How Chinese Investors Could Send The Tech Boom Into Overdrive

How Chinese Investors Could Send The Tech Boom Into Overdrive

Chinese residents have long-since missed…

U.S. Market Growth Weighs On The Global Economy

U.S. Market Growth Weighs On The Global Economy

As the United States continues…

Austin Galt

Austin Galt

Austin Galt is The Voodoo Analyst. I have studied charts for over 20 years and am currently a private trader. Several years ago I worked…

More Info

EURUSD To Rally Or Not To Rally?

The EURUSD has recently come down to test major support. So now it has to decide whether to bust on through that support or rally from here. Let's take a closer look to see what its decision will be.

EURUSD DAILY CHART
EURUSD Daily Chart

Last Friday 18th July price came down and made a low at 1.3491 before rallying to close the week at 1.3524, thereby creating a little bullish daily candle. Now what is interesting is the region in which this trading occurred. We have minor support from the 5th June low of 1.3503 and major support from the 3rd February low of 1.3477. These can be seen by the two horizontal lines.

This low achieved a couple of things. Firstly, it marginally broke minor support which would have cleared out some stops and sets up a common bottom formation being a false break low. Also, the fact that it rallied back up and closed above the support level is a bullish sign.

Secondly, the low held major support averting the super bearish scenario. Things could get ugly once that major support level is broken.

Now, as I outlined in my previous report, I am bearish overall the EURUSD and the big reversal top in place solidifies that in my mind. However, I still think there is more backing and filling to be done before price makes a significant move down.

I have drawn some Fibonacci retracement levels of the down move from the May top to last week's low. My personal preference is for price to rally from here up to the 61.8% level at 1.3801 or the 76.4% level at 1.3875. I can't decide yet which level I lean more towards. Perhaps that will be made clearer with time.

Also, I have added a Stochastic Indicator which, while not conclusive, does look about to roll back to the upside so that is some minor evidence that a rally may be about to commence.

Summing up, the EURUSD is at a tipping point and could go either way. I vote to rally!

 

Back to homepage

Leave a comment

Leave a comment