EURUSD Update November 2015 (D)
Created on Thursday, 12 November 2015 09:48
Written by Austin Galt
Let’s revise the daily chart of the Euro.
EURUSD DAILY CHART
Since previous analysis, price was unable to hold support and has traded down to the next area of support outlined in previous analysis.
This current low at 1.0674 sets up a point 4 low of a 5 point broadening top. I now expect a big whoosh to the upside that eventually brings in the final point 5 high.
The Bollinger Bands show price is now leaving the lower band and I expect price to head up rapidly to the upper band perhaps with a pitstop around the middle band.
The PSAR indicator has a bullish bias after price busted the dots on the upside today. This is only the tight setting so early days.
I have added Fibonacci retracement levels of the move up from low to point 3 high and this has certainly been a deep retracement with the low between the 76.4% and 88.6% levels.
The Fibonacci Fan shows the low right at support from the 88.6% angle. Nice.
The RSI put a bullish divergence in place at this low while both the Stochastic and MACD indicators have both just made a bullish crossover as of today.
This recent move down looked very much like a downtrend continuation to the eye but it is just too obvious and when something is that obvious then it is highly likely that something else will take place.
So, the expectation is that a big rally is set to occur that will put the finishing touches on this corrective phase that has been in force for around 8 months now.