Currency Analyst since 2010

EUR/USD: trade idea

Dima Chernovolov

  • EUR/USD corrects up from strong support level 1.1125
  • Next buy target - 1.1500

EUR/USD has been rising steadily from the start of this week – continuing the previous upward correction from the strong support level 1.1125. The support zone near this support level was strengthened by the fact that the price was trading far outside of the lower weekly Bollinger Band. The upward reversal from this support level completed the earlier minor impulse (i) of the 5th minor impulse 5 (which belongs to the 3rd intermediate impulse (3) of the primary Ⓒ-wave, inside which the pair has been falling in the last few months).

With the weekly Stochastic and RSI indicators still moving deep in the oversold territory, the pair can be expected to correct up further toward the nearby resistance level 1.1500 (which reversed the price last week).

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