Thursday, 7 June 2018

EUR/USD Approaching 38.2% Fibo


The EUR/USD pair is performing excellent during the last four sessions keeping the uptrend and today surged to 1.1837, the highest level since late April. The bullish mode is supported by the QE easing hopes with upcoming ECB meeting next week. On the other hand the greenback is losing strength on latest Trumponomics release concerning the start of several countermeasures which will bring slowdown of economic growth.
Technically speaking the short term outlook remains neutral to bullish. On the four hour time frame the price is developing above its bullish 20-day SMA, which crossed to above the flat 100-day SMA.
The 200-day SMA currently coincides with the 38.2% Fibonacci retracement of latest April to May bearish run at 1.1855 representing the main bullish target. RSI is keeping upward slope around 65 level. Stochastic has entered into extreme overbought area but had eased around 90. 
As mentioned above the first and main target for the bulls is provided by the 38.2% Fibo at 1.1855 and eventual breakthrough will drag the pair towards next challenge at 1.1960 (the 50% Fibo of same retracement).




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