The EUR/USD rallied to its highest level since July 9 on Thursday, as the U.S. Dollar continued to lose its safe-haven appeal dampened by fading fears about the trade dispute between China and the United States.
Daily Technical Analysis
The main trend is up according to the daily swing chart. The uptrend was confirmed earlier today when buyers took out three tops including 1.1725, 1.1734 and the July 23 top at 1.1751.
The EUR/USD is in no position to change the trend to down, but it is up eight sessions from the last main bottom at 1.1526. This puts the Forex pair in the window of time for a potentially bearish closing price reversal top.
The minor trend is also up. Its trend will change to down on a move through 1.1650. This will also signal a shift in momentum.
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Daily Technical Forecast
Based on the early price action, and the old saying that old tops tend to become new bottoms, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the July 23 top at 1.1751.
A sustained move over 1.1751 will indicate the presence of buyers. If this generates enough upside momentum then look for the rally to extend into the July 9 main top at 1.1791. This is a potential trigger point for an acceleration to the upside with the June 14 top at 1.1851 the next major upside target.
The inability to hold 1.1751 will signal the presence of sellers. The daily chart opens up under this level with the next target angle coming in at 1.1686.
We’re in a momentum-based market so look for prices to continue to grin higher as long as momentum is to the upside.
This article was originally posted on FX Empire
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