Euros are becoming really overextended on the topside now....so we need to be careful....Our yearly high so far has been 10829....but if we go back to Dec last year it was 10873...So even if we push through the yearly high we still have this 10873 area that we really have to push through.....given we are very much overbought on the daily charts I am just not sure that we can actually break this latter barrier...weekly ones still point higher.....and monthly ones are just slightly off oversold levels...so quite bullish but you might see a pullback first as the 60 min and the dailies are at extreme overbought levels....we are not seeing this on the 4 hrly charts....these are bullish off 60%....
Its all about levels this week...oh and that we might well have a small H&S topping pattern forming on the 4hrly charts..1.07 would be the break point....If we break this then we could be looking once more at the 10620/10580 significant support looking to entice once more...
It really is a crucial time for the Euro....and sadly you will want to keep your eyes on the Dax as well...So although there has been this sense of Euphoria since we held the 10620 support.. we have only been to 10783 ish....so it hasn't really made a massive gain....and the gain was on the US rate hike....so just be careful with the charts currently being overbought...short and medium term...
Now to take pressure off the downside we need to clear 10873....so a break of 10885 sustained would keep a bullish stance on the Euro and we should then be able to push higher to excellent resistance at 11035....Hand on heart is this likely under current market conditions.... Id have to say no....but after a correction this could be a feasible outlook over the coming weeks...
EURUSD Current Trading Positions
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