EUR/USD DAILY
Long Position
- Significant departure out of the 1.17177 line
- Bullish reversal candlestick
- slight consolidation and tapering off the downside pressure
- Moving average far away
- Mid-line at 1.2050
- Shock Appeal of the 1.17 level being touched
Departure
I mentioned in previous posts how important that deeper zone where the buyers would be located in green would be in the not too distant future and it seems that the technicals of today's market proved that 1.1717 would be one of the most critical support points for EUR/USD
Bullish Candlestick: Hammer
The departure yesterday and today's re-attempt at reaching lows indicate a bullish reversal, we are more likely than not going to be challenging the mid-range of this 1.25548 top to 1.1717 bottom
Consolidation and fake Break-Down
The daily candlesticks here started deliberating a bit before the final climax lower (excitement for bears) and what happened recently before the steep decline seen on Monday was the weak hands being washed out of the trade. There was some degree of pause in terms of momentum slowing down (more consolidations) before the final rush to near 1.17
Moving Average (50 simple) Far Away at 1.2162
This and the other factor being the mid point in the range increase the chance of buyers showing their willingness to trigger algorithms "buy programs" designed to level up to 1.18, 1.19, and 1.20 etc until the ultimate goal in this sequence is achieved
Mid-Line
It was more of a subjective measure on my part to say the mid-line is at 1.2050 because it can be higher, but as always when scaling in and scaling out of trades its better to manage profits on the way higher.
Shock
Many Euro bulls had their attitudes and expectations challenged over the past few weeks, and maybe what they needed was the last test of their strength with the long wicked daily candle printed yesterday. For a majority of this year it would have been hard to believe that the EUR/USD would even trade below 1.21 let alone 1.20
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