Analyst Thoughts: EUR/USD Medium-term
VIEW RETAINED FOR A MATURING BEAR TREND BETWEEN 1.0640 AND 1.0360
The F*/K* bear phase remains valid but seems to be in a mature stage of development.
Corrective type price action within the parallel channel and a diverging RSI, confirms the view of a downward correction, rather than a bear trend.
Any definite breach of F*/R0 will activate the expected bull trend to R2 and R3.
The recent upward move from K* to F* has overlapping traits, pointing to further interim downside towards K*, before completion (perforated line).
It is important that the pair remains above line K* for the illustrated outlook to remain valid.
Target and Re-assessment Levels:
Important Levels: F* and K*
Primary Trend and Target Levels: Gains off to R3
Monthly Range: R1*/K*
Prevailing Trend and Target Levels: Downside to K*, then gains to R1
Technical Rating: Medium