Analyst thoughts: EUR/USD Medium-term
EXPECTING THE PAIR TO CONSOLIDATE WITHIN THE 1.0580 TO 1.1175 RANGE BEFORE INITIATING A BULLISH TREND TARGETING 1.1655.
The general view of a 1,2,3,4,5 bull trend to R2 is retained. Some detailed adjustments to the current LQ consolidation pattern were made.
A somewhat irregular A,B,C pattern is developing within the LQ parameters.
The current phase C downside is slow and overlapping, suggesting limited further downside to S0/S1*/Q cluster support.
A 1, 2, 3, 4, 5 bull trend could develop off the indicated target area around S0 and Q.
The bear trend remains valid until a break of R0*.
It is important that the market remains above S1* for the illustrated outlook to remain valid.
A sharp breakthrough R0* will confirm the end of the corrective phase 2 with further upside scope.
Alternative: The depth of the phase 2 correction suggests that the bull phase could remain overlapping and within the LQ parameters as a likely alternative.
Target and Re-assessment Levels:
Important Levels: R0* and S1*
Primary Trend and Target Levels: Gains off Q to R2
Monthly Range: R0/S1*
Prevailing Trend and Target Levels: Downside to Q
Technical Rating: Medium