EURUSD Bullish Reversal Towards 23% Fibonacci Level

EURUSD Bullish Reversal Towards 23% Fibonacci Level

On Friday we saw early signs of a EURUSD bullish reversal on the forex dance floor. Is this reversal here to stay? Should you be bullish or bearish on the pair now? Read on for an IDDA (75% OFF for Cyber Monday!) approach… As well as different scenarios that you can trade the pair in a medium and long basis.

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Technical Analysis | EURUSD Bullish Reversal

Daily Chart: The EUR/USD pair confirmed a bullish reversal first thing during the Monday’s Sydney session after reaching the very strong support of 1.0515. It formed an Evening Star Candlestick pattern.

EURUSD Bullish Reversal Towards 23% Fibonacci

We were expecting a correction at this point because, hey, what goes down, must go back up. However, it is important to remember that the pair remains below the Ichimoku cloud. Also, we don’t really have any more technical signals other than the evening star and the strong support.

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Monthly Chart:  The pair remains under the massive Ichimoku cloud on the monthly chart. It has continued ranging between 105 – 115 since January 2015; nearly two years now. The range has remain strong even through the craziest of global risk events including Brexit and US elections in 2016… So we are still looking for the range to continue unless the pair breaks below 105 … Say on a US interest rate hike.

EURUSD bullish reversal – Monthly Chart Range Continues

Fundamentals | EURUSD Bullish Reversal

We have mostly a light economic calendar today especially during the Asian and London sessions. ECB’s Draghi is due to speak at European Parliament in Brussels at 2 PM GMT. His remarks should includeeconomic and monetary developments and the consequences of the Brexit.  This could create a bit of a volatility in the EUR crosses, helping short-term traders reach target.

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We have yet another NFP Friday coming up. And this NFP Friday happens to be the last NFP Friday before the December FOMC meeting. The anticipation of these events could create enough volatility for the EURUSD to reach short term to medium term bullish targets before heading back down.

Market Sentiment | EURUSD Bullish Reversal

Fundamentally speaking, there is no clear reason for the recent EURUSD bullish reversal. So this is all on the shoulders of market participants profit-taking after two weeks of strength.

Trading Strategy | EURUSD Bullish Reversal

Putting the technical, fundamental and sentimental points of the IDDA approach together, we can settle on a short term to medium term trading strategy for now. Please visit out Premium Facebook Group for detailed strategy.

As always, when in doubt, book a private session with me to get your portfolio on track.

Here are Invest Diva’s calculations for important EUR/USD approximate levels to keep an eye on:

Support Levels Turning Point Resistance Levels
1.0490 1.0665 1.0830
1.0515 1.0750 1.09

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Kiana 喜愛成
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