EUR/USD Forms Head and Shoulder with 1.4140 Neckline

-

EUR/USD Forms Head and Shoulder with 1.4140 Neckline

Short-term
Following up with yesterday's updates, the EUR/USD indeed is declining further after the bearish divergence.The market has reached the important 1.4140-1.4150 support.
The market developed a head and shoulder and the 1.4140 level is the neckline.
If we break it we might extend the current towards 1.4050-1.4060 level.
The 4H chart also shows the head and shoulder and the 50% retracement target in the 1.4050-1.4060 zone.
Other clues for the bearish outlook in the short-term is the bearish divergence, although it has already been resolved. Still, the RSI continues to decline and a failure to cross its 3-period moving average suggests bearish continuation.
Candlestick action also reflects bearish continuation as the bears look more dominant since the market reached 1.4250.
The current decline should not break below 1.40 area as wave 4 should not overlap wave 1. If it does, the bullish scenario is put aside, and we can anticipate for a major reversal. For now, if the neckline of 1.4140 is broken, we should have a short-term decline towards 1.4050.

المشاركات الشائعة من هذه المدونة

Tantawi meets with Palestinian President

-
صورة
  Palestinian Authority President Mahmoud Abbas By DENDRAWI EL HAWARY - Translated by HEBA HABIB Field Marshal Hussein Tantawi, Chairman of the Supreme Council of the Armed Forces , met with Palestinian Authority President Mahmoud Abbas and his accompanying delegation visiting Egypt Saturday. Abbas thanked the council, the government, and the Egyptian people for their efforts in the prisoner exchange, their ongoing support for the Palestinian people and, their promotion of reconciliation among Palestinian factions. The meeting discussed the regional events and their impact on the peace process, and Palestinian efforts in the international arena towards realizing the legitimate rights through the General Assembly of the United Nations. The meeting was attended by Lieutenant General Sami Anan, Chief of Staff of the Armed Forces, Minister of Foreign Affairs Mohamed Kamel Amr, intelligence ...
قراءة المزيد

Egypt economy recovering, wants Europe debt relief

-
Industry says opening of banks boosted economy * IMF says recovery depends on tourism rebound By Tom Pfeiffer CAIRO, Feb 21 (Reuters) - Egypt would like European Union states to cancel its debts to them but has not made a formal request, the EU's local delegation said, as Egypt's economy showed signs of recovery from weeks of political turmoil. The government has slashed its growth forecast after 18 days of street protests across the country unseated President Hosni Mubarak, scaring off tourists, hitting inward investment and sparking a wave of strikes in banks, industry and government. The economy was worth an estimated $217 billion last year and it relies heavily on foreign investment, tourism and fees from the Suez Canal. A government statistics agency estimates the uprising cost the economy at least $1.7 billion. A spokeswoman for the European Union delegation in Cairo said European Union Ambassador Marco Franco met Finan...
قراءة المزيد