Forecast for The Week - levels for EUR/USD: ranging bullish or ranging bearish?

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Press review

Sergey Golubev, 2015.12.14 14:22

EUR/USD: short-term strategy, long-term strategy and the levels to watch - Swiss Finance Corporation (based on the article)

• Short-term strategy: "Positive above 1.0860 with scope for retest of recent highs.Market seems not to be overly happy with EURUSD staying above 1.10. Respect 1.09-1.1050 range for now. Involve only on the extremes."
• Long-term strategy: "Daily close above 1.10/1.1020 turns our m/t model positive. We do not get excited though and take wait-and-see approach looking for additional confirmation that rally has further room to go."
  
• Levels to watch: "1.0920/860 on the downside; 1.1030/50 on the upside."

As we see from the chart above - the price (H4) is on bullish market condition for the secondary ranging within s/r levels waiting for direction:

• If the price will break 1.1042 resistance level from below to above on close H4 bar so the bullish trend will be continuing.
  
• If price will break 1.0926 support level from above to below on close H4 bar so the secondary correction will be started within the primary bullish market condition.
• If price will break 1.0795 support level from above to below on close H4 bar so the bearish reversal will be started with the secondary ranging.
• If not so the price will be ranging within the levels.
  

• Recommendation to go short: watch the price to break 1.0926 support level for possible sell trade
• Recommendation to go long: watch the price to break 1.1042 resistance level for possible buy trade
• Trading Summary: ranging bullish