EURUSD is set to recapture 1.3966 with a breach , support 1.3773 !

As shown on the daily chart below , the EURUSD was rejected from the weekly support 1.3785 with bullish divergence on the daily chart , and printed support at the 1.3773 levels . As as result ; outlook in EURUSD turns on the upside on the daily time frame with risks towards the 1.3930/1.4000 levels , further upside will aim the 1.4080 levels.

On the weekly chart , the pair has printed a temporary resistance at  the 1.3865 levels few weeks ago , last Friday the pair closed on weekly  at 1.3870 , few pips above 1.3865 levels , this scenario should recapture the 1.3966 levels at least .

Conclusion : since the pair was rejected from the weekly support 1.3785 with bullish divergence on the daily chart , printed support at the 1.3773 levels and breached above the  weekly resistance 1.3865 , a higher leg above the 1.3966 levels is in sight within 1.4080/1.4180 range before the next fall, note that this scenario is valid as long as the daily close is above the 1.3773 levels , losing the 1.3773 levels on a daily closing basis will extend losses towards the 1.3672 levels before the next possible rise…..


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Tags: EURUSD

Comment by Srinivas dev on May 5, 2014 at 3:49pm

Haitham you  always  appear  to  be  correct  in analysis  and it  enables us to  understand the trade better. I  just  hope thursday  forecast  would  be bullish on eurusd

Comment by Gulam Hussain on May 5, 2014 at 4:24pm

Mr. Haitham, thx for excellent analysis always. Can you please tell me which time in daily closing do you refer to? London or NY?

Comment by Haitham653 on May 5, 2014 at 4:29pm

GMT + 3 hours...

Comment by Srinivas dev on May 6, 2014 at 10:10am

covered my  longs at eurinr  expiry  thanks Haitham i eurinr is going bullish now  and would see how thursday  comes out.  regards  srinivas

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