As is evident on the chart we can see that the move up off of the 10/29 low has been very strong and so far impulsive in nature. What we typically expect to see at the conclusion of an Ending Diagonal is for the move out of that diagonal to return to the origin of that diagonal very rapidly. In this particular case the origin of the Ending Diagonal was at the 1.0982 level so this is the ideal initial target level for our initial move up off of the 10/29 low.
Again ideally this pair does make it up to at least the 1.0982 before seeing a significant retrace to give us further confidence that a bottom has in fact been struck. Now with that being said even if we do retrace prior to reaching this ideal target level as long as the retrace is corrective in nature and is able to hold over the 1.0645 level then we will be looking much higher in this pair in the coming weeks and months.
The commentaries and analysis represent the opinions of the analyst nd should not be relied upon for purposes of effecting securities transactions or other investing strategies, nor should they be construed as an offer or solicitation of an offer to sell or buy any security. You should not interpret these opinions as constituting investment advice. Our analysts may have personal positions in the instruments mentioned.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.