FXWIREPRO: EUR/USD Short-Term Bull Rally Likely Prolong After Jumping Above 23.6% Fibo and 7DMA
The euro continue to drag yesterday's bullish momentum with minor gains as the pair trades at the 1.1403.
For now, more bullish potential in short run is expected after bouncing above 1.1260 (i.e. 21DMA & also 23.6% Fibo on monthly).
You can observe even though the prices drop yesterday, it has shown a strong support at 1.1320 to bounce above 7DMA again.
RSI (14) on daily chart converging to the prevailing upswings and being bullish bias (Currently, daily RSI trending above 68 while articulating).
This is an indication of buying momentum when prices touched 1.1403 levels by taking the computation of last 14 day periods the magnitude of recent gains to recent losses in an attempt to signify the overbought zone is nearing but no signs of selling in short run.
While slow stochastic curves have remained in overbought zone, no indications of sell yet again (Currently, %D line at 84.5753, while %K line at 87.0024). These leading oscillators on monthly curve also signals healthy convergence to the price rallies.
We spot out a bounce above 23.6% fibo levels (i.e. 1.1261), this move creates even more upside potential, sideways trend lasted for more than a year now showing slight strength upto nexxt resistance at 1.1460 levels.
Hence, despite short term uptrend upto 1.1460, in long run we still uphold our projections between 1.1460 to 1.1261 (23.6% fibos) by Q2 end-2016.
With this short term bullish atmosphere, we advocate to remain long in near month futures for target upto 1.1460 levels.
The material has been provided by InstaForex Company - www.instaforex.com