The FX Specialist view – Earlier in June the Daily EUR/USD chart had shown signs of bear fatigue, although subsequent action proved muted on the upside. However, Thursday’s strength re-focuses attention on nearby resistances, through which a better, albeit temporary, recovery beckons.
- WEEKLY CHART:
Breaking the 1.2328 Oct-08 low turned attention towards lower supports, including the 1.1435 equality target (Jul/Oct-08 fall extended off 1.5144 Nov-09 high) and lower bear channel base projection.
However, focus is on the Daily chart below, with possibility of a shorter term bull signal which would postpone lower values. - DAILY CHART:
An earlier positive RSI divergence marked a s/term halt in downtrend, and now Thursday has seen an initial breach of the s/term falling resistance line.
In the FX Specialist Guide we require a recovery/close through the 23.6% retracement at 1.2645 to open the way for further gains. But also note the higher falling resistance line currently around 1.2800, which is closing in on this Fibo level now.
Both resistances need to be overcome to strongly suggest a continued, but temporary recovery.
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