EUR/USD: intraday weakness is now a chance to buy [Video]

Richard Perry Independent Analyst

EUR/USD

The euro had been stuttering in recent sessions, but has taken another shot in the arm with progress in the Brexit process. Technically this has bolstered the developing two week uptrend, but yesterday’s decisive bull candle has now taken the market clear of the $1.1000/$1.1025 range which had become a sticking point. Breaking above $1.1060 (last week’s high) also now opens the real test, the resistance at $1.1100. This old low from April/May became key resistance throughout September and would be a signal for a crucial shift in euro sentiment. It is the first key lower high and a breach would confirm that a new positive medium term trend would be developing. This improvement is reflected in the momentum indicators, with RSI into the 60s and multi-month highs. MACD lines are accelerating higher towards neutral and Stochastics are above 80. Intraday weakness is now a chance to buy, with the hourly chart showing support between $1.1020/$1.1060 and within that underlying demand at $1.1040. There is a key higher low within the recovery at $1.0990 now. A decisive close above $1.1100 opens $1.1160 and more importantly $1.1250.

Author

Richard Perry

Independent Analyst

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