EUR/USD daily analysis
|EUR/USD
Euros holding at lower levels...and on the 4H charts you have the 9 and 21 period M/As converging at 1.1089/91 to lend support to the market...Now this also ties in with the Daily Pivot @ 1.1089...so there is support down here...
You also have the 1.1070/60 area as good support...so I am long Euros @ 1.1095, will add to the long position if we dips lower towards 1.1040/20....and will hold unless we make a break of 1.0980...I just feel that at the moment Euros look ok...and although I hate trading August markets I'm here so I might as well take advantage of any move I see..If the Euro can make a break above 1.1118 we should be in for a rise to at least the R2 at 1.1131..Now this all does depend short term if the Euro can stay above the 1.1089 DP...
If we fail to hold here all is not lost as the spike to 1.1027 would still act as a cushion and leave the market with a Double Bottom formation which is bullish...Technically we are oversold on the daily/weekly and monthly timeframes and it is quite rare for all these 3 time frames to be at such oversold levels at the same time...So may the $ is in for a bit of a beating...If you take a look at the $Index chart you can see that when we spiked to 98.93 that week we closed lower..and $Index is overbought with diverging indicators so you need to be really careful of this...I think as August draws to a close and we all come back slightly more refreshed on Sept 2nd the markets will take a direction and run with it..and for me looking at the $Index I see this has the potential to trade a lot lower... thus currencies especially the Euro should benefit from this...If we take out 1.1135 look for 1.1170/80..
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