EUR/USD: Bulls back in control [Video]
|EUR/USD
A series of positive closes has re-established the bulls as the driving force in the market. Bouncing off the support of a four month uptrend, but more importantly maintaining the support at 1.1750 was a key medium term technical signal. A near term correction is being used as another chance to buy around the medium term uptrend. The spike high resistance at 1.1915 that was posted in the wake of the ECB meeting last week is set to be tested. If the bulls can overcome this initial barrier it would open 1.2010 once more. It would be at that stage where the market would likely need to consider how the ECB would react (cue jawboning of the euro lower in an attempt to counteract its strength). Technical indicators are now decisively improving, with daily RSI rising above 60, Stochastics also rising and MACD lines bottoming. It suggests near term positions buying into weakness. The hourly chart shows support in the band 1.1855/1.1885. Below 1.1830 would question the near term strength.
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