The current picture for the common currency is bearish. We broke the trendline/channel/flag and several support levels (1.1080 pivot, 1.0810 low). I currently still have part of a short position open from 1.1030 and 1.0860.
However, this possible bullish bat could send this pair back up to test the broken trendline.
This scenario is backed up by possible support from the monthly up trendline and possible support from the March low level around 1.0460 (stops below that level!).
In case this setup fails I will be looking for reversal signs at the PRZ's of a possible shark or crab pattern, but be cautious since then we will be below that longterm trendline ánd the March low, which would be extremely bearish!!
Beyond that the next stop is without a doubt parity...!
Exactly where the ECB would like the EURO to go so watch Draghi and Yellen speeches and PA reactions closely in the coming weeks folks!
However, this possible bullish bat could send this pair back up to test the broken trendline.
This scenario is backed up by possible support from the monthly up trendline and possible support from the March low level around 1.0460 (stops below that level!).
In case this setup fails I will be looking for reversal signs at the PRZ's of a possible shark or crab pattern, but be cautious since then we will be below that longterm trendline ánd the March low, which would be extremely bearish!!
Beyond that the next stop is without a doubt parity...!
Exactly where the ECB would like the EURO to go so watch Draghi and Yellen speeches and PA reactions closely in the coming weeks folks!
Updated view here: