EURUSD: Indecision on weekly, but bigger picture improved

EURUSD: Indecision on weekly, but bigger picture improved

Ahead of the new week opening, we examined the weekly studies of the EURUSD pair where we have caught a candlestick of indecision formed in the previous week.

However, bulls are now protected by the second dot of Parabolic SAR over weekly basis and this is the first time we see bullish sign on Parabolic since the last week of October 2014.

EURUSD-10-05-2015-Fxcomment

In the interim, Vortex-trend indicator is on the verge of tracing a positive crossover, while RSI14 needs a breakout above last week high at 1.1393 to beat the momentum resistance of 50.00.

Such conditions are seen as confirmations for the bigger picture, which we discussed earlier, using monthly basis.

Key support level is located in 1.1050 boundaries and it is clear from our technical analysis series that, the main resistance level resides in the 1.1295 and level that should be observed-in case traders take EURUSD to it- is 1.14 as a break of which will reinforce our constructive bullish scenario.

On the downside, a weekly closing below 1.1050 will weaken the bullish tendencies, while clearing 1.0835 will give us a rational reason for concern.

Finally, we play the big intervals for the EURUSD pair, thereby, it is important to manage our trading desk as well, using a small quantity of the entire equity.

Amir El Araby

Co-Founder & Chief Global Strategist at FxComment.com, with 17 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). Amir is also the official partner of Harmonic Trader (Mr Scott Carney) and the official instructor of harmonic trader association for Arab countries.

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