EURUSD: Second resistance under-attack

On April 30, we said (EURUSD on the verge of something huge) and we used the monthly studies to analyze the market movements of the pair.

EURUSD-14-05-2015-FXCOMMENT

Of course, May is still running and we can’t depend on its candle to suggest the next big move, but we have some notes on the pair’s movements during the first half of the month as follows:

-The EURUSD has knocked the doors of 1.1295 many times until it succeeded in beating it.

-The aforementioned resistance resides 55 pips above 1.1240 where 61.8% Fibonacci of the major long-term rally from 0.8230 to the all-time high of 1.6037.

-The 23.6% Fibonacci retracement of the CD leg of the bullish harmonic AB=CD is at 1.1295.

-Today’s recorded high is very close to 1.1460 where the second classical resistance exists.

-The current bullish action is a normal expected movement due to the bullish candlestick structure formed in April.

-A breakout above 1.1460-1.1500 will expose 1.1680 and will ease the path towards our main technical objective at 1.18 where traders meet 38.2% Fibonacci of the CD leg.

To summarize this, we remain bullish on the EURUSD; noting that, our long position recommended for medium-term traders is still in progress and our followers can move their stop loss to 1.1040 instead of 1.0650 as appearing on the risk manager in the right side of the chart.

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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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