After the index fluctuated slightly, it continued the upside move targeting next 12405 areas, which is 76.4% correction for the entire decline from 14266 to the trough at 6461.
Supporting our expectations for the continued bullishness is represented with:
1.The mentioned channels
2.The 50 SMA which is supporting the current bullishness
3.The recent breach of 61.8% correction which is the key for extending the upside move and exit the general downside trend
On the other hand, momentum indicators are overbought and it will restrict the upside move especially when facing the psychological 12,000 areas, which might force the index lower in a slight correctional wave.
In general, we expect the upside move to continue over short and medium term basis, though breaching 11600 might pressure the index further south towards 11275 which is the key to preserve the general upside move for the index.
Euro rebounded from levels around 1.3400 due to the positivity of momentum indicators, where it neared the retest level once again around 1.3575.
SMA 50 is around this level, alongside Stochastic gradually losing bullish momentum and thereby making us expect a bearish intraday direction after touching the highlighted retest level, where awaited targets start at 1.3400 then 1.3365. Note that the sensitivity of the targeted levels, where continuing its stance in front of the pair’s descend will help trading return within the bullish trend once again, while the effect of the bearish technical pattern mentioned in our previous reports will end.
The trading range for today is among the key support at 1.3365 and the key resistance at 1.3615.
The short term trend is to the upside as far as the daily closing is above 1.2795 remains intact with targets at 1.5135.
After the index fluctuated slightly, it continued the upside move targeting next 12405 areas, which is 76.4% correction for the entire decline from 14266 to the trough at 6461.
Supporting our expectations for the continued bullishness is represented with:
1.The mentioned channels
2.The 50 SMA which is supporting the current bullishness
3.The recent breach of 61.8% correction which is the key for extending the upside move and exit the general downside trend
On the other hand, momentum indicators are overbought and it will restrict the upside move especially when facing the psychological 12,000 areas, which might force the index lower in a slight correctional wave.
In general, we expect the upside move to continue over short and medium term basis, though breaching 11600 might pressure the index further south towards 11275 which is the key to preserve the general upside move for the index.