The EURUSD continued its bullish momentum last week, topped at 1.2637, bottomed at 1.2465 and closed at 1.2572…
The bias remains bullish in nearest term testing 1.2700 region, Immediate support is seen around 1.2530 where bounce back to upside is expected, losing this level would take us to neutral zone testing the main support at 1.2465, losing this one with 4hour closing below this level may end the current bullish phase and might test 1.2390 zones….
For the upside, immediate resistance is seen around 1.2610, a clear break with stability above this level would increase the risk toward 1.2750!!
In the bigger picture:
1-Weekly: rebound from 1.2042 still active only a weekly closing below 1.2465 would end this bullish correction and should target the psychological level 1.2000, stability above 1.2465 with weekly closing above this level would increase the risk toward 1.2700/1.3000 levels!!!!
2-Daily: rebound from 1.2042 still active as long as we have a daily closing above 1.2390 – high of 03 Aug 2012 – only a daily closing below this level could end this bullish correction!!!
On the 4 chart, a clear break with 4 hour closing below the neckline 1.2465 would end this bullish scenario but be careful of false breakout since we have strong support on daily at 1.2390!!
Tips & Helps for this week:
1-Around 1.2390 I’ll be looking for bullish reversal patterns.
2- Around 1.2700 I’ll be looking for bearish reversal patterns.
3-Above 1.2610 the intraday trend is bullish.
4- Below 1.2530 the intraday trend is bearish.
Recommendations: buying the pair around 1.2400 targeting 1.2700, stop loss 1.2300