In March, the failure of the bulls to fix above 1.3880 applied enough bearish pressure in the form of a bearish channel towards the recent demand zone around 1.3700.
At retesting of 1.3700, significant bullish pressure was applied pausing the recent slide off 1.3965 which led to another ascending impulse towards 1.3880.
On April 11, a bearish Doji candlestick was expressed around 1.6880, followed by a bearish engulfing daily candlesticks aiming to apply bearish pressure on the price level of 1.3800 which has been offering support especially on Monday when the depicted long-tailed hammer daily candlestick was expressed.
On the other hand, a price level of 1.3800 has been providing bullish support so far. Wednesday and Friday's daily candlesticks are bullish engulfing daily candlesticks that originated off this level.
At the same time, several bullish attempts (including Tuesday's bullish spike) took place to step above 1.3850-1.3880. However, immediate bearish reaction is usually applied due to lack of bullish follow-up.
Yesterday, we had a bullish breakout above 1.3880 which topped at 1.3950 ( Notice the most recent top established around 1.3965 ).
Careful price action should be watched to assess the next destination of the pair.
Since the EUR/USD pair broke below 1.3855, the pair has roughly been moving within a bearish channel until the depicted uptrend line came to meet the pair roughly at 1.3700-1.3680 enhancing this price zone as significant intraday demand. This led to the recent bullish impulse above 1.3810 and 1.3880.
Finally, the last bottom established around 1.3810 could achieve higher high above 1.3880. The bulls topped at 1.3950. However, these levels correspond to the upper limit of the ongoing bullish channel.
This may lead to a corrective movement towards 1.3880 before further bullish spikes can take place.
For the bulls, price level of 1.3880 remains the nearest DEMAND level for them. It should be watched for a possible BUY position at retesting.
The material has been provided by InstaForex Company - www.instaforex.com
For detail explanation and best discovery on market trends you may visit via Intraday technical levels and trading recommendations on EUR/USD for May 7, 2014 . Thanks for your support on Intraday technical levels and trading recommendations on EUR/USD for May 7, 2014
No comments:
Post a Comment