March 18, 2011 – EUR/USD Confirms with Bullish Momentum Heading Towards 1.4280
Simple Moving Average(SMA) 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.
Fibonacci Study
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Intraday pivots and Intermediate-term support and resistance
Multiple Time-frame Analysis
EUR/USD in a Bullish Breakout to 1.41, 1.4280 (3/17)
EUR/USD
- The bullish breakout is developing in further rally as anticipated yesterday. The first target between 1.4100 and 1.4130 has been reached.
- This rally has bullish momentum confirmation as the RSI in both the 4H and 1H charts broke above 70 although the 4H RSI is still just kissing it.
- The next target is the 1.4280-1.43 resistance area, above which 1.4380 is the next target.
- Then even if the market appears to be very bullish near 1.44, we have to monitor this 1.44-1.45 zone as a key resistance zone for the long term.
- The daily chart shows the short-term targets based on swing projections and triangle pattern breakout.
- The weekly chart shows the key resistance cluster just below 1.45. If the market breaks above 1.45, a major long-term bullish signal would be developed. Otherwise, we have completed a 3-swing correction, and a major decline should follow.
Will the EUR/USD break the 1.4280-1.43 resistance zone? We would love to hear what you think. Subscribe and become a member to share your views and join live discussions as well as webinars about the markets.
Fan Yang CMT
Chief Technical Strategist
FXTimes
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.
he GBP/CHF might finally have topped off after a sharp rally from 1.44 to 1.54 (a 1000-pip swing).
- There is a cluster of 61.8% fibonacci retracement level, psychological resistance at 1.54, as well as a previous support for a double top that was broken (after which, the slide from 1.60 extended to 1.44.
- This volatile pair also has the RSI now failing to sustain a break above 60 – all these are signs of topping.
- The 4H chart also shows the topping action in more detail, and lays out some fibonacci retracement levels as targets for conservative bearish scenarios.
