$EURUSD: 5 Reasons To Be Bullish
Tuesday, January 1, 2013
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Happy New Year Traders , Here are 5 reasons to be bullish on EURUSD for next 6 months :
1- On the monthly chart, the Monthly trend range is been repeatedly confirming that Price is trending up. ( 5 Consecutive Bullish Candles, with the last open closing above the high of two months.) In addition to that, the Monthly candle that printed lower - price was bought up near the open of previous candle ( November 2012).
2- Every time for the last 5 years - price went to 1.18 and was bought, it never returned back to it. Which re-confirm the range on higher time frame.
3- On the weekly chart , Euro has so far maintained its gaining from fundamental changes. Is either creating a new micro range or breaking for it and re-entering the range between 1.35X-1.295X. The weekly suggests either hesitation to above 1.32 or trend exhaustion ( 1.26X to 1.33X ) Which could be temporarily ignored if something happened on fundamental level to wear off this hesitation and you get panic buying. However, since both Bulls would like better price and bearish would like to take their long waited campaign. I still by the opinion, that the next 200-300 pips is Down not up.
4- The daily is bit neutral, slightly bearish- its a mere congestion that can go either way. 1.3245 was a line in the sand to write the full story ( 50 FIB between 1.33050 / 1.238X ) and so far Price is suffering to stay above it and managed to close one day above it - and price pulled back.
So, i really can't find any reason to target 1.18 /1.20 for a bearish campaign - unless , Greece is bankrupt .
5- On a fundamental level : Favors the EURO at least for the next 6 months - expected recovery, Greece's GDP slight Green numbers , Spain Bailout , Yen's inflating. However, since all this start a bit early - January will be a range month , no clear direction and no reason for a break out. Which render EURUSD kind of not the hot deal at the moment. I personally would keep an eye on it , but i will be waiting for a dip buying on EURJPY for a swing - and scalp EURUSD & and the major pairs.
Ayman Khlifat on Twitter
Follow @aymankkhlifat
Happy New Year Traders , Here are 5 reasons to be bullish on EURUSD for next 6 months :
1- On the monthly chart, the Monthly trend range is been repeatedly confirming that Price is trending up. ( 5 Consecutive Bullish Candles, with the last open closing above the high of two months.) In addition to that, the Monthly candle that printed lower - price was bought up near the open of previous candle ( November 2012).
2- Every time for the last 5 years - price went to 1.18 and was bought, it never returned back to it. Which re-confirm the range on higher time frame.
3- On the weekly chart , Euro has so far maintained its gaining from fundamental changes. Is either creating a new micro range or breaking for it and re-entering the range between 1.35X-1.295X. The weekly suggests either hesitation to above 1.32 or trend exhaustion ( 1.26X to 1.33X ) Which could be temporarily ignored if something happened on fundamental level to wear off this hesitation and you get panic buying. However, since both Bulls would like better price and bearish would like to take their long waited campaign. I still by the opinion, that the next 200-300 pips is Down not up.
4- The daily is bit neutral, slightly bearish- its a mere congestion that can go either way. 1.3245 was a line in the sand to write the full story ( 50 FIB between 1.33050 / 1.238X ) and so far Price is suffering to stay above it and managed to close one day above it - and price pulled back.
So, i really can't find any reason to target 1.18 /1.20 for a bearish campaign - unless , Greece is bankrupt .
5- On a fundamental level : Favors the EURO at least for the next 6 months - expected recovery, Greece's GDP slight Green numbers , Spain Bailout , Yen's inflating. However, since all this start a bit early - January will be a range month , no clear direction and no reason for a break out. Which render EURUSD kind of not the hot deal at the moment. I personally would keep an eye on it , but i will be waiting for a dip buying on EURJPY for a swing - and scalp EURUSD & and the major pairs.
Ayman Khlifat on Twitter
Follow @aymankkhlifat
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