Double Bottom and Trend line breakout: The EUR-USD bounced off an old resistance trend line, using it as support form a Double Bottom seen in the 1H chart, in the grey.
The rally during the 27 September session extended into the 28 September Asian and European sessions pushing above 1.29, and coincidentally breaking above the declining trend line going back to the September high of 1.3170 where the market had a Double top in the 1H chart the same “size” as the current Double Bottom.
Throwback: If a throwback develops, holding above 1.29 or even 1.2880 should keep the Bullish outlook in the short-term. But, if price falls below a projected channel support (parallel to the rising resistance trend-line that already exists in the near-term, and the RSI falls below 40, then the Bullish notion is abandon, and if so the focus goes to breaking below 1.2850 again.
Bullish scenario: To the Northside, the rally 1stmeets this week’s Resistance pivot at the 1.2970-1.2975 area.
Bullish continuation is then challenged by the 1.30 psych handle. Very likely there will be some choppiness around 1.30. If the market can crack through, it opens up the September high of 1.3170, in a Bullish to sideways market.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.
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