FXstreet.com (San Francisco) - EUR/USD is still retracing the 1,100-pip bounce from 1.2041 to 1.3170, last at 1.2820 with further retracements expected in the short term.
As Anna Coulling, founder of Hawkeye notes: “Eurodollar still in pullback phase with further weakness expected and looking to move lower next week. However, in the medium term we can expect to see a return to bullish momentum and a re-test of the 1.3171 in due course.”
However, that test of resistance in the 1.3170 area may be seen once EUR/USD breaks back above the 1.2830 price zone, according to Ian Copsey, Market Analyst at Harmonic Elliott Wave: “There is a 4-hour bullish divergence,” notes Mr. Copsey. “To confirm a reversal higher we shall need to see a break back above 1.2830-40 that should spur price back towards Friday's 1.2959 high. A break there will confirm stronger gains and back to 1.3020-50.”
As Anna Coulling, founder of Hawkeye notes: “Eurodollar still in pullback phase with further weakness expected and looking to move lower next week. However, in the medium term we can expect to see a return to bullish momentum and a re-test of the 1.3171 in due course.”
However, that test of resistance in the 1.3170 area may be seen once EUR/USD breaks back above the 1.2830 price zone, according to Ian Copsey, Market Analyst at Harmonic Elliott Wave: “There is a 4-hour bullish divergence,” notes Mr. Copsey. “To confirm a reversal higher we shall need to see a break back above 1.2830-40 that should spur price back towards Friday's 1.2959 high. A break there will confirm stronger gains and back to 1.3020-50.”
