Market Research

EURUSD Bullish Momentum Targeting Physiological Level

15-May-2017 @ 02:29 PM

Euro/dollar started off the week with bullish momentum. Last week, this pair has pulled back from support level held at 1.0840-50. Now, this pair is gaining bullish momentum again and targets toward 1.1000 level. Strong bullish candle suggests for bullish power on this pair. 

Technical lines from top to bottom:

1.1299 is the top line seen in November before the collapse. 1.1119 was a support line beforehand.

The round number of 1.10 is a key psychological level. 1.0949 is close by, and the most recent 2017 high.

The swing high of 1.0869 is the swing high in December and remains fierce resistance. 1.0819 was the post-French elections low.

1.0775 capped the pair in January and remains of importance. 1.0719 was also a high in January.

The pair was unable to crack 1.0659 in February and it remains the high end of the range. 1.0629 is the next level, holding back the pair in February and March.

Uptrend channel stays intact

EUR/USD has had three significant and rising lows in 2017: 1.0340 in the wake of the year, 1.0490 in March and 1.0565 in April. Also on the topside, we can see higher highs. If this is the case, there is more room to the upside than to the downside.

While the euro suffered some “buy the rumor, sell the fact” on Macron’s victory and is now set to enjoy the upbeat economic news from the old continent. In the US, there are doubts about a rate hike in June.

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