Monday, 5 December 2016

EUR/USD: No Vote Turned Into Bullish Mode

The NO vote on the Constitutional reform referendum in Italy led to quick sell-offs in EUR/USD and during the Asian session the pair plummeted to 1.0504. This level has not been visited since March 2015 and the pair marked a fresh yearly low. The pair recovered back to 1.06 levels during the European trading as the released positive EU macro data encouraged the bulls. Upon US opening the price skyrocketed, surpassed the 1.07 level and marked an intraday high at 1.0739, which is a two week high.As seen on the H4 chart the pair grew strong enough to cross the 100-day EMA and currently is placed well above it. Technical indicators have turned from south to north. RSI is at around 60%. Stochastic nears extreme overbought conditions, but still displaying strong bullish momentum.
The intraday support is placed at 1.0505 and the resistance – at 1.0745. As clearly seen on the chart, the pair visited both levels today.
Next resistance levels are located at 1.0800 and higher at 1.0850. Looking downwards support levels could be seen at 1.0625 and lower at 1.0550.


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