EURUSD was heavily bought yesterday after bad US GDP data and buying into dips continued after FOMC. As suggested in THIS ARTICLE it was clear that EURUSD has been bullish and buying into dips has been the winning option. Today we can see that EURUSD is trapped between Hidden Bullish Divergence – which has given additional bullish momentum to the pair and Regular Bearish Divergence which has put the pair into retracement mode. Interesting to see is that both divergence have been spotted AT important price levels – L3 for hidden and H4 for regular. The pair has already broken Equidistant channel to the upside which suggests the following:
Crucial for EURUSD is 1.1060 to the downside and 1.1250 to the upside. Break below 1.1060 will negate divergence momentum and the pair should tank towards confluence of L4 and equidistant lower trend line. If it break below the bullish momentum will be negated and the pair should target neutral territory around 1.0880. To the upside , break of 1.1250 will target 1.1355 and will secure the pair bullish trend.
Latest news imply that the deal between Greece and EU is looming, the potential deal could be signed this Sunday so I still think that the pair should be bought on dips but also pay attention to LEVELS and ZONES which I have posted here.
The analysis and the article presents Nenad's opinion. Remember, financial trading is highly speculative & may lead to the loss of your funds. Proper risk management is the Holy Grail of trading.
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