EURUSD needs a confirmed permission from yields to inch higher

The EURUSD resumed its drama last week with strong bullish movements that have been turned into weakness ahead of closing, influenced by the upbeat NFP figures.

From a technical perspective, we see the breakout below the yields’ uptrend line (set from early September 2013) as a new opportunity to long the EURUSD pair.

eurusd-bund-fxcomments-08-06-2015

Nevertheless, this long catch in EURUSD needs another confirmation with yields coming below the uptrend line to affirm the major breakout below the aforementioned uptrend line.

In other words, we will stand aside until yields breaches through horizontal support to long EURO and we may long also if EURUSD overtakes the minor resistance of 1.1380-previous week’s low- as that will weaken 1.1500 psychological this time.

Of note, clearing 1.1500 will expose 1.1680 as a soft objective for bulls, while 1.18 -1.20 could be the main objective zone.

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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