EUR/USD Update: Nearing major pivots

102
Back
Next

29 MAY 2018

The high intensity down trend remains in play. Major support is however coming in range around 1.1450. Here the pivots of 2015-2017 coincide with the 50% retracement (weekly) and the lower regions of the cloud. Overall, some consolidation or short-covering is expected. It is however noteworthy that intraday divergence of loss of momentum is still not visible; gambling on a recovery is extremely dangerous and unjustifiable at this point.

We do suggest covering some shorts (40%-50%) in anticipation of further developments. For the next 1-3 months a zig-zag recovery up to ~1.1850 followed by a renewed sell-off seems most likely. Again, we need the give the market some time to reshuffle.

  • Near term trend: negative
  • Long term trend: neutral/slightly negative
  • Outlook: possible long-term trend reversal
  • Strategy: partially cover short @ support
  • Support: 1.1450 / 1.1420 / 1.1210-
  • Resistance: 1.1850 / 1.1920 / 1.2030 / 1.2150+
  • Outlook cancelled/neutralized: above 1.1920 (!)

Weekly chart Euro / US Dollar

Back
Next