EUR At Risk Of A Bullish Reversal At The 200-week MA

Share On Facebook
share on Linkedin
Print

1.13 remains an important level for the Euro as we head towards the weekly close, with a growing potential it could mark a bear-trap and reversal of fortunes for bulls.

Starting with the daily chart, it looks straight forward for bears. The trend is clearly bearish, it trades within a descending channel and bearish hammers have provided timely swing highs. Mean reversion has kicked in at the lows yet prices remain below the 20-day average, whilst yesterday’s spinning top Doji shows a hesitancy to push higher. That’s all well and good but, only the weekly chart is on track for a bullish reversal pattern whilst a close above 113 warns of a bear-trap. Only recently AUD was in an identical situation, before its bullish hammer at multi-year lows went on to provide a springboard for a 4.3% rally.

We can see on the weekly chart the dominant trend remains bearish, but prices have recovered back above the 200-week average and original breakout level (1.13). It’s not often we get to speak of such a long average, but it’s worth noting that since the second half of 2017 prices have produced bullish rallies above the 200-week MA. If we are to see a close above 1.13 there’s a serious risk of further upside, which will be music to the ears of counter-trend traders, who’ll be looking to break the bearish channel on the daily.

 

Faraday Research offers real time FX and Equity trade signals from qualified analysts. Click here to try us free.

 

 

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20211208 04:11:34