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14 Feb 2014
Flash: New upside target in EUR/USD: 1.4120 - FXStreet
FXStreet (Barcelona) - Goncalo Moreira CMT, FXStreet Technical Analyst notes that we closed last week by looking at the EUR/USD price action on a 1-box chart and saw how price action had been contained in a down slopping channel.
Key Quotes
“The pair has now hurdled to 1.37 and broken the neat resistance line of that channel. This whipsaw type of activity occasionally develops from an intermediate correction on the larger time spans where the prevailing bullish trend is still operative.”
“The two validated targets 1.4840 on the upside and 1.2950 on the downside remain long-term valid targets, but a new established count emerged on the 3-box reversal chart: it's the 1.4120 level resulting from the mentioned intermediate bottom.”
“The significance of this new target comes with the breaking of the objective bearish line from the December top- similar to the descending line on the previous chart-, offering a potential recapture of the previous swing highs at 1.3800/50. Compounding the euro's upward barreling, this line was broken on a double-top signal leaving the chart ready for a triple-top breakout, a serious warning for any bearish commitment.”
Key Quotes
“The pair has now hurdled to 1.37 and broken the neat resistance line of that channel. This whipsaw type of activity occasionally develops from an intermediate correction on the larger time spans where the prevailing bullish trend is still operative.”
“The two validated targets 1.4840 on the upside and 1.2950 on the downside remain long-term valid targets, but a new established count emerged on the 3-box reversal chart: it's the 1.4120 level resulting from the mentioned intermediate bottom.”
“The significance of this new target comes with the breaking of the objective bearish line from the December top- similar to the descending line on the previous chart-, offering a potential recapture of the previous swing highs at 1.3800/50. Compounding the euro's upward barreling, this line was broken on a double-top signal leaving the chart ready for a triple-top breakout, a serious warning for any bearish commitment.”