EUR/USD looks to break bear trend

on Aug 4, 2014

For our analysis today we have decided to present the EUR/USD currency cross because we see strong signs for a possible trend reversal. After the NFP data release on Friday we saw a strong EURO appreciation which resulted in the break of the bearish channel formation on a 4h basis. This is very strong sign of an impending rally. The new trading week has begun with more bullish action and as long as the quotes are able to stay above 1.3400 there is very good chance of a bullish wave towards the major level of diagonal resistance at 1.3500.

Looking at the Ichimoku indicator and MA we see a change in the trend momentum from bearish to bullish which is another confirmation of a possible rally. Furthermore all of the risk releases are completed which should help towards a dollar depreciation as well as an increase of risk appetite.

However if we see quotes breaking below 1.3400 and 1.3366 in particular, the scenario changes a lot and technically this would mean that there might be another bearish wave before a bullish correction occurs.  

Report by . (Zhivko Yordanov)

RISK DISCLAIMER The content of this analysis does not contain investment advice or recommendation and should not be considered as a solicitation to buy any financial instruments or products. JFD Brokers is not liable for any damages, which would be/are caused by individual comments and statements regarding this analysis and accepts no liability in respect of completeness and correctness of the content. Thus, the investor exclusively bears the risk and is solely responsible for his/her investment decisions. The presented analysis does not take into consideration any personal investment objectives, financial circumstances or needs. Trading Foreign Exchange and Contracts for Difference (CFDs) is highly speculative and may not be suitable for all investors. Please ensure that you fully understand the risks involved.



Looking to capitalise on rising & falling USD, GBP, EUR rates? Trade forex in minutes with our top-rated broker, eToro.


77% of retail CFD accounts lose money.