Analyst thoughts: EUR/USD Medium-term
VIEW RETAINED FOR A MATURING CONSOLIDATION BETWEEN 1.1175 AND 1.0580
The general view of a 1, 2, 3, 4, 5 bull trend to R2/R3 on completion of the LQ consolidation is retained.
The expectation of phase C downside within the F*K parameters to S0/S1*/Q cluster support is nearing the indicated target area.
Confirmation of a maturing F*K trend is found in a somewhat oversold and diverging RSI (line D), as well as corrective price action within the F*K lines.
The current bear trend will remain valid until a definite breach of F*.
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/S1* to R3
Monthly Range: R0/S1*
Prevailing Trend and Target Levels: Ongoing downside to Q
Technical Rating: Medium