EUR/USD
- EUR/USD moving inside minor impulse wave 5
- Further gains likely toward 1.2500
EUR/USD has been rising in the last few trading sessions inside the sharp minor impulse wave 5, which belongs to the strong medium-term impulse wave (C) from the start of November. The active impulse wave 5 started when the pair reversed up with the daily Japanese candlesticks reversal pattern Bullish Engulfing (encircled below) from the combined support area lying at the intersection of the multiple intersecting support levels: the 50-day moving average, support trendline of the daily up channel from October, lower daily Bollinger Band and the 38.2% Fibonacci retracement of the previous upward impulse from November.
EUR/USD is expected to continue the upward movement toward the next buy target at the next prominent resistance level 1.2500 (which reversed the earlier waves 3, (b) and b).
EUR/CHF
- EUR/CHF broke resistance area
- Next buy target – 1.1800
EUR/CHF continues to rise inside the accelerated medium-term impulse wave (3) – which earlier broke through the resistance area lying at the intersection of the pivotal resistance level 1.6000 (former strong support from November and December, which reversed the previous (B)-wave at the start of February, as can be seen from the daily EUR/CHF chart below) and the 38.2% Fibonacci correction of the previous major ABC correction ② from the middle of January. The breakout of this the resistance area strengthened the bullish pressure on this currency pair – which is indicated by the rising daily Momentum.
EUR/CHF is expected to continue to rise toward the next buy target at the next strong, multi-month resistance level 1.1800 (which stopped the earlier daily uptrend in the middle of January).
By: Dima Chernovolov
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