EURUSD Technical Analysis 2015, 06.12 - 13.12: bear market rally to the bullish reversal

EURUSD Technical Analysis 2015, 06.12 - 13.12: bear market rally to the bullish reversal

7 December 2015, 09:11
Sergey Golubev
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Daily price  is on the primary bearish market condition located near and below Ichimoku cloud and 'reversal' Senkou Span lines within the following key support/resistance levels:

  • 1.0980 key resistance level located on the border between the primary bearish and the primary bullish on the chart, and
  • 1.0516 key support level.
The daily price was on breakout (bear market rally) in the end of the last week: price broke key resistance levels to above to be stoped near bullish reversal levels.


D1 price
- bear market rally:

  • Tenkan-sen line is near and below Kijun-sen line for the ranging market condition by direction.
  • Absolute Strength indicator's data is estimating the breakout to be continuing.
  • Chinkou Span line is located to be near and below the price to be ready to cross it from below to above for the next good breakout.
  • 'Reversal' Senkou Span line (as the border between the primary bullish and the primary bearish on the chart) is located near the price which makes the bullish reversal to be very likely in the near future for example.
  • Nearest support levels are 1.0565 and 1.0516.
  • Nearest resistance levels are 1.0980 and 1.1494.

If D1 price will break 1.0516 support level on close bar so the bearish trend will be continuing without secondary ranging up to 1.0461 level as the next bearish target.
If D1 price will break 1.0980 resistance level on close bar so the reversal of the price movement from the primary bearish to the ranging bullish condition will be started.
If D1 price will break 1.1494 resistance level on close bar so the price will be fully reversed to the bullish market condition located to be above Ichimoku cloud in the bullish area of the chart.
If not so the price will be on ranging within the levels.

  • Recommendation for long: watch close D1 price to break 1.0980 for possible buy trade
  • Recommendation to go short: watch D1 price to break 1.0516 support level for possible sell trade
  • Trading Summary: bearish rally to the bullish reversal
Resistance
Support
1.09801.0565
1.1494
1.0516


SUMMARY : bearish

TREND : bearish breakout
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