The Euro Bulls Are Back: Targets to Eye

EUR/USD

The euro has recently rebounded, and the pair is approaching resistance after swift Fridays action. Will the bulls be strong enough to overcome it and if so, where exactly can their efforts take them?

These were our Fridays observations:

() The EUR/USD bears were stopped at the combination of the green support zone based on mid-Oct lows and the 61.8% Fibonacci retracement yesterday. A rebound followed, resulting in the exchange rate invalidating the earlier tiny breakdown below these supports.

This suggests further improvement, especially when we factor in the buy signals generated by the daily indicators.

Should it be the case and the pair extends gains from here, well see at least an increase to the previously broken lower border of the declining grey trend channel in the coming week.

The situation indeed developed in line with the above, and EUR/USD has reached the first above-mentioned upside target.

Then, both the CCI and the Stochastic Oscillator generated their buy signals, increasing the likelihood of further improvement in the very near future even if we see a small pullback from current levels first.

Nevertheless, if the bulls prove strong enough to break higher, the way to the upper border of the grey channel (or even recent peaks) may be open.

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Thank you.

Nadia Simmons
Forex & Oil Trading Strategist

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All essays, research and information found above represent analyses and opinions of Przemyslaw Radomski, CFA and Sunshine Profits' associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Przemyslaw Radomski, CFA and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Radomski is not a Registered Securities Advisor. By reading Przemyslaw Radomski's, CFA reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Przemyslaw Radomski, CFA, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.