Analyst thoughts: EUR/USD Medium-term
VIEW RETAINED: A BULL PRICE ACTION TO 1.1655 SEEMS LIKELY
The general view of a 1,2,3,4,5 bull trend to R2 and towards R3 is retained.
In line with this view the current downside off R1 to S1* would be phase 2 and will be followed by trending phases 3 and 5.
A break of R0* will activate the upside to at least R1/L.
It is important that the market remains above S1* for the illustrated preferred outlook to be valid.
A sharp break through R0* will confirm the end of the corrective phase 2 with further upside.
Alternative: The depth of the phase 2 correction suggests that the bull phase could remain overlapping and within the LQ parameters.
Target and Re-assessment Levels:
Important Levels: R0* and S1*
Primary Trend and Target Levels: Gains to R2 and R3
Monthly Range: R1/S1*
Prevailing Trend and Target Levels: Upside off S1* to R1
Technical Rating: Medium