On july 28 and 29 the pair dropped, likely due to risk aversion from poor economic releases.
After which, the pair pushes up the next two days.
Ending the week at the top resistance region.
This shows me apparent bullish momentum. The attempt to push the pair down was met and counteracted with strong reactions.
The daily chart below shows how quick the bear attempt was subdued.
I have identified a lower trend line from May 18 and have included in the chart.
If the bulls continue to chip at the 1.42 region, it is likely to break down, opening the pair to 1.44.
Taking the clue from S&P500,
We see it recover fast from the recent risk aversion and it is currently pounding the 1000 mark too.
Let's take a look at the current situation
- A sharp bounce from a drop for the EUR/USD
- A close of the week at the resistance region for the EUR/USD
- A sharp bounce from a drop for the S&P500
- A close of the week at the resistance region for the S&P500
The market is bullish.
As usual i advise caution and proper money management.
A number of important economic releases next week including the NON FARM PAYROLL for US.
Will be watching those closely and the market's reaction for further insights.
Cheers and trade safe.
