Analyst Thoughts: EUR/USD Medium-term
VIEW RETAINED: PREPARING FOR A BULL TREND TO TO 1.1300/1350.
The preferred alternative of a 1, 2, 3, 4, 5 bull trend to RA3*, was confirmed after a break above S0*. The illustrated view is retained.
Phase 3 could end around R1, followed by a correction between R1 and S0*. Overbought RSI conditions (highlighted) confirm the likelihood of an interim correction.
The final upside to the RA3* target area is expected to be followed by a meaningful reversal back to S0* and S1.
S0* remains the pivotal level for the view. A breach of this level would signal a reversal in the current bullish sentiment and trend.
Target and Re-assessment Levels:
Important Levels: S0*
Primary Trend and Target Levels: Gains to RA3, then down to S1
Monthly Range: R2/S0*
Prevailing Trend and Target Levels: R1/S0* consolidation
Technical Rating: Medium