EUR/USD headed for R3 and a major trendline target

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 9, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    EUR/USD is making fresh highs in a mighty comeback, leaving many who were exposed on a short squeeze out of pocket and reigning in the longer term bets for a strong dollar.

    EUR/USD gathers pace on bad banks and US

    The turmoil is rife again with levels of volatility across the board not seen since Black Monday of August of last year. The European Banks are in the media and the prophet of doom is waving his stick, propelling a flight to safety and supporting a recovery in the euro.

    The US economy is under scrutiny ahead of Yellen's testimony tomorrow. She will need to be convincing while the entire world tines in to see whether there are indeed reasons to be concerned that the US economy could be on the verge of an outright recession, while the more optimistic will tell you that the global economy is still growing.

    EUR/USD levels

    Technically, the pair is headed for a break of the March 2015 commencing bullish trendline at 1.1364/86 (16th October high and R3 at 1.1372). This level should be a strong area of resistance on a continuation of the rally targeting the psychological 1.1500 level. While above the pivot of 1.1165, the market is bid with daily RSI still below 70 at 66.
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