EURUSD @ 1.0976 bullish – Potential for higher towards resistance cluster
EURUSD extended the strong rebound off the 1.0517 weekly, reversal low (November 30, 2015) to reach 1.1043 (December 7, 2015 weekly high), retracing over 50% of the 1.1494/1.0517 fall. The daily indicators remain positive, suggesting there is scope for further gains towards the next resistance cluster including 1.1051 (20 week moving average), 1.1105 (September 21, 2015 range low), and 1.1123 (61.8% of the 1.1494/1.0517 fall) which is beneath the 18-month down trendline from May 5, 2014 peak).
However, on a pullback, the pair has to break down below the 1.0796 support (December 7, 2015 weekly low) to signal the end of recovery and weaken towards 1.0517 for a retest.
Outlook:
Intraday: bullish
Daily: bullish
Weekly: neutral
EURUSD extended the strong rebound off the 1.0517 weekly, reversal low (November 30, 2015) to reach 1.1043 (December 7, 2015 weekly high), retracing over 50% of the 1.1494/1.0517 fall. The daily indicators remain positive, suggesting there is scope for further gains towards the next resistance cluster including 1.1051 (20 week moving average), 1.1105 (September 21, 2015 range low), and 1.1123 (61.8% of the 1.1494/1.0517 fall) which is beneath the 18-month down trendline from May 5, 2014 peak).
However, on a pullback, the pair has to break down below the 1.0796 support (December 7, 2015 weekly low) to signal the end of recovery and weaken towards 1.0517 for a retest.
Outlook:
Intraday: bullish
Daily: bullish
Weekly: neutral