Fan Yang
3
All posts from Fan Yang
Fan Yang in Fan Yang,

EUR/USD - There might be buyers here (1.1350)

EUR/USD has been sliding, another victim of the recent USD-onslaught. The euro however has been more resilient than commodity currencies (AUD, CAD, NZD), as well as the yen (JPY). If USD strength stalls, I would prefer to buy EUR/USD. Let's take a look at the technical picture.

EUR/USD 4H Chart 5/10

(click to enlarge)

The 4H chart shows EUR/USD in a bullish trend since March. This a short-medium-term rally, but a short-term bearish swing is threatening this mode. 

Price has come down from above 1.16 to below 1.14. But as price approaches 1.1350, the decline is challenged by some support factors: 1) a rising speedline 2) the 200-period simple moving average and 3) a previous common support pivot area. Also note the RSI hanging around 40. Despite cracking 40, it still shows that it is trying to hold above it, which reflects an attempt to maintain the bullish momentum since March.

Price action is still bearish, so we would be going against the short-term trend if we buy here. But we would be in-line with a medium-term trend. I think a break below 1.1320 would violate the bullish trend.

My trade idea to go long:
Entry: 1.1350
Stop: 1.1290
Target 1: 1.1430
Target 2: 1.15
Target 3: 1.16