Published On: Fri, Mar 10th, 2017

Bounce confirms positive pattern for EURUSD

InstaForex

Background


Early downside yesterday extended this week’s losses to the most negative levels for four trading days. But yesterday’s report highlighted the potential for a Bullish Rising Three pattern, as a negative reaction to last Friday’s rise, has been weak. This was justified, as buying interest returned to EURUSD higher than expected and led to net gains. 

The upside move stalled around the 13-day moving average, but the bounce was enough to confirm the positive pattern. An early move beyond yesterday’s peak is looked for as confirmation but bullish sentiment looks clear.

Management and risk description
A move to 1.0640 means the stop can be raised to break even.

Parameters

Entry: Buy in 1.0590/95 area and at 1.0571.

Stop: 1.0542 offered.

Target: 1.0616, 1.0640 and 1.0681.

Time horizon: Intraday, ending 30 minutes before release of nonfarm payrolls (due at 1330 GMT)

Rising three

 

Lows rejected

 

Long-term trend

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— Edited by Robert Ryan

Non-independent investment research disclaimer applies. Read more
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