Weekly
• Last Candlesticks pattern: Shooting star
• Time of formation: 03 May 2016
• Trend bias: Down
Daily
• Last Candlesticks pattern: Shooting star
• Time of formation: 3 May 2016
• Trend bias: Sideways
EUR/USD – 1.1648
The single currency only eased to 1.1613 before rising again, adding credence to our bullish view that recent upmove is still in progress and price already exceeded indicated upside targets at previous chart resistance at 1.1714, bullishness remains for medium term upmove to extend further gain to 1.1800-10, break there would encourage for headway to 1.1870-80 but near term overbought condition should limit upside and price should falter below 1.1900-10, bring retreat later.
On the downside, whilst initial pullback to 1.1650 and possibly the Tenkan-Sen (now at 1.1628) cannot be ruled out, reckon 1.1583 (previous resistance turned support) would limit downside and bring another upmove to aforesaid upside targets. Below 1.1530-35 would suggest a temporary top is possibly formed and risk test of the Kijun-Sen (now at 1.1475) but a daily close below there is needed to add credence to this view, bring correction to 1.1400 and possibly test of support at 1.1370.
Recommendation: Buy at 1.1590 for 1.1790 with stop below 1.1490.
On the weekly chart, as euro has eased after meeting resistance at 1.1777 last week, suggesting minor consolidation would be seen and pullback to 1.1650 and possibly towards support at 1.1613 cannot be ruled out, however, previous resistance at 1.1583 should limit downside and bring another rise later, above said resistance at 1.1777 would extend gain to 1.1800-10, then 1.1870-80, having said that, near term overbought condition should limit upside to 1.1940-50 and price should falter below 1.2000, risk from there is seen for a retreat later.
On the downside, although pullback to 1.1650 and then 1.1613 is likely, reckon 1.1583 (previous resistance turned support) would contain downside and bring another rise later. Below 1.1490-00 would defer and risk test of the Tenkan-Sen (now at 1.1448) but a weekly close below there is needed to suggest a temporary top is possibly formed, bring correction to support at 1.1370, break there would provide confirmation and extend weakness towards 1.1312 support.
