EUR/USD: bulls pulling to break the three and a half month downtrend channel [Video]
|EUR/USD
After consolidating under a confluence band of resistance $1.1000/$1.1025 in the past week, a strong bull candle has pulled the market to breach the three and a half month downtrend channel. Although the channel break is yet to be confirmed on a closing basis, the bulls are in control again today. This comes with momentum really looking to confirm the break now. The RSI is above 50 and threatening three month highs, whilst Stochastics are pulling higher from a “bull kiss” and MACD lines are also advancing. These are all indicators on the brink. A close above $1.1025 today would be a strong signal now for continued recovery towards a test of $1.1100. However, more importantly, there would be a key shift in the medium term outlook for recovery. It is interesting to see that $1.1000 is holding on little unwinding moves today as the breakout becomes supportive. The old pivot at $1.0965 is now key for a continued recovery.
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