19 May 2015

MAJORS UPDATE 19.05.2015


Rate has started the week with a bounce lower from the major 1.1500 resistance level.

For a downside continuation pair first needs to break below the last week's lows and the medium term rising trendline at 1.1140. A break below would work as a good indication that the rate is heading back down to test the yearly lows around 1.0500.

With the RSI sliding into oversold territory a small bounce higher is preferred first, creating a possible head and shoulders pattern.

Only a daily close above the 1.1500 level and falling trendline resistance would invalidate my immediate and medium term bearish bias for the pair.


The pair is retracing lower from the rally last week. The former resistance/new support at around 1.5540 may act as a turn-around point and may provide with a good long entry. A rejection here would lead a way higher to test the last week's highs at 1.5800 and the major psychological level at 1.6000.

Only a break below 1.5350 would invalidate my immediate and overall bullish bias for the pair, as it would indicate the broader downtrend continuation and may take the rate down to test the yearly lows around 1.4700 level.


Rate has formed something of a rising wedge pattern, however, the overall US dollar weakness all over the board for the past weeks prefer upside continuation.

A break above 0.8010 would indicate a rebound from the rising trendline support and should take the rate up to test the previous highs at 0.8150.

A break below 0.7950 would invalidate my immediate bullish outlook for the pair and may take the rate down to test the lows around 0.7550 once more.


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