Everyone is short $EURUSD, Why? Clear signs it is bullish!
Everyone seems to be long dollar and they are targeting $EURUSD to go down to 1.000. Why? Fundamentally, it may be the case but technically, there is NO signs of this at all. Technical analysis shows the actions people are taking.
Let’s go through the charts and explain why the charts look bullish. Below is the monthly chart with the $IMTF™ indicator in TradingView.
The chart is a zoomed out view. We wanted to illustrate the long term support/resistance from the past that are influencing price action today! If you look all the way back to 2003 (far right) and look at the two horizontal lines, you will see a black cross 1.0754. This is acting as a major resistance right and the top of the current consolidation pattern.
Below is the zoomed IN view of the monthly chart.
In the chart, there is a black cross at 1.0509 which we specified with a horizontal line. It marks off the bottom of the consolidation pattern. These black crosses are stopping price from going down. Since support has been established since 2015. This means, we have been consolidating for over 2 years now unable to break this support. 3 attempts and we have failed! The momentum for the bearish trend that started in Oct 2014 is about to be neutral next month (assuming price closes were we are at now). This will not be good for the bears at all!
Below is the weekly time frame.
The weekly time frame clears shows the 2 year consolidation pattern. Notice, on the last bearish movement we didn’t retest the low at all. We made a higher high with black crosses. This is a sign of bullish pull back to start to break some resistance. If price breaks the major resistance at 1.0820 on a weekly time frame, it will be confirmed that we are about to go higher to reach the cloud. The next bullish strategy on the weekly time frame will then tell us if we are going to enter a long term bullish trend. Either way, the long term bearish will be over next month assuming we don’t break the support before the end of the month.
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