EUR/USD looks to break bear trend
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)
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