Hello everyone…..and sorry for this absence the past couple of days…
As usual …..I return with something like a bomb !!!!!
Believe it or not !!! EURUSD could fly 1000 pips even 2000 pips by the end of 2015 !!!!
First of all , take a quick look at the yearly chart posted below :
Recently , the pair hit critical support on the long run at the 1.0507 levels ( 2002 high ) and the rising support from the 0.5633/0.8227 levels …………
Note that …as long as 1.0507 support holds on a yearly closing basis , rise from the 0.8227 levels towards the 1.6038 levels remains intact and further upside towards the 1.6038 levels is likely the upcoming years..
resistance comes at the 1.2097 levels (2014 low) , a clear break would open 1.2745 levels , further upside will recapture main resistance and the psycho level 1.4000 …sustained breakout above this level will suggest that fall from 1.6038 levels is over around 1.0507 levels ,If seen , focus will be the 1.6038 levels…
On the downside , sustained breakout below the 1.0507 levels will build strong pressure on the 0.8227 levels and may break lower !!!
Note that we have another option : the EURUSD is likely to consolidate within 1.0507/1.3993 range the upcoming years….
Anyway, let’s take a look at the monthly chart below :
Yearly chart support 1.0507 was rejected on a monthly closing basis , with a long bullish candle , resistance comes at the 1.1265 levels , sustained breakout above this level will have large bullish implication towards the 1.3129/1.3440 levels ….but in return , a failure to hold gains above the 1.1265 levels on a monthly closing basis could mean a return to the 1.0461 levels..
The most interesting is weekly time frame ; we have 2 interesting things :
1: As long as 1.0461 support holds on a weekly closing basis , the pair remains on recovery mode and further upside couldn’t be ruled out , immediate support comes at the 1.0848/1.1036 levels ..
2:We have a failure hidden bearish divergence , in other words we have an extended bearish divergence , sellers will try topping around 1.1500 levels , If 1.1500 fails to limit the upside offensive , next try is likely to be around 1.1800 levels…
Conclusion : As long as 1.0848/1.1036 support holds on a weekly closing basis , eyes on the 1.1500 levels ahead of the 1.1800 levels…below 1.0848 should weaken the last bullish run and open the 1.0461 levels..