Technical analysis for EUR.USD for November 7, 2018
In our previous analysis we explained that in the short-term prices seem to want to move higher as the technical setup favors a move towards 1.15-1.16. The longer-term trend remains bearish but in the short-term we have more signs of strength.
Light blue dots – medium strength support
Dark blue dots – maximum strength support
EUR.USD is making higher highs and higher lows in the 4 hour chart. Price is holding above the blue dots system and is now breaking out or at least trying to break out of the short-term bearish channel. In previous posts I explained that there are several indicators pointing to a bounce coming as the strength of each lower low was weakening. Support is now found at 1.1380 and at 1.1340. As long as we hold above these two levels, short-term trend will favor a move above 1.15 towards 1.16.