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18 January

By Amir El Araby

Category: Technical Analysis

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Shall EURUSD beat long-term resistance, D1STP charts may answer!

By examining the weekly chart of EURUSD, we can see how the pair is currently struggling with the long-term falling trend line that connected the movements from all-time peak of 1.6035.

Momentum indicator reaction with the afore-mentioned resistance line may form a negative divergence, forcing the pair to show strong downside moves with a break below 1.2140-1.2130 initial support.

The rule of (history repeats itself) could be efficient despite recent hard fluctuation on EURUSD and the DXY (Dollar index) chart below may support our potential bearish outlook for EURO.

Classically speaking, the Dollar index moved bearishly opening of 2017, but it is presently nearing tough support that may push it higher over medium-term and long-term basis.

From a pure harmonic perspective, a bullish alternate harmonic bat pattern offers PRZ -potential reversal zones- that is accompanied with bullish divergence.

Accordingly, we see fair amount of possibility that Greenback will inch higher. 

Amir El Araby

Financial advisor with 18 years’ experience in the technical analysis studies for FOREX, Commodities and Indices. Amir El-Araby worked as a mentor for many companies and institutes, where he presented new methods for trading in the financial market. Amir is a member of ESTA (Egyptian Society of Technical Analysts).