EURUSD remains bullish
Entry Point: 1.2540
Stop Loss: 1.2465
Take Profit: 1.2615
For the coming week, the EURUSD
is now projecting another bullish signal in its daily chart, as yesterday’s intraday trading showed a falling leg inside the consolidation pattern in which the MACD
raises the possibility that a bullish reversal is expect, as so it was as today’s intraday bias, shows that the EURUSD is now showing a strong bullish reversal, in which the price set at 1.2540 is a good entry point for the coming hour, as prices is now trading at 1.2552 which still might hold for the coming hours. In addition, as its 63-day SMA (olive line) and 84-day SMA (black line) both indicate that prices will show more bullish stance for the coming hours, as the black line is still above the olive line indicating that prices will rise. Its advance three brother bullish patterns is also present, with its 9-day SMA
and 5-day EMA
, already penetrated the 63-day and 84-day SMA lines indicating its bullish stance. The Bollinger Bands (21) is showing support for its bullish stance as its upper channel is opening its bands in order to make room for prices to rise further.
In its economic outlook, the markets are showing weak signals in its reaction, as key market news is projected to show pessimism in its overall unemployment level. Unemployment in the Euro region is projected remain above the threshold of 11% and probably rises to 11.3% in August which higher than 11.2% in the previous month which confirms that worsening labor market in the region, this rise in unemployment is due to the region’s sovereign debt crisis as well as its recessionary pressure than is hampering growth in the region’s economic health. In addition, its overall economy in the Euro-zone contracted at 0.2% in the second quarter which added to the rise of unemployment due to massive layoffs. Thus, expect price to remain bullish as its RSI (14) and MACD (9, 26, 12) showing that prices are still below its overbought levels, despite the negative market outlook for the Euro, as more easing concerns are helping risk sentiments to advance.