(THE FOLLOWING INFORMATION IS PURELY
SPECULATIVE AND WE DO NOT ACCEPT ANY LIABILITY FOR GAINS NOR LOSSES ACHIEVED BY
USING THE GIVEN INFORMATION)
EUR/USD
30 March 2020
Edward M. Hamman
Director of
Technical Analysis
BrunHam Investments
Good day traders
The past few weeks were quite interesting if you look at
below Fig. 1.
Fig 1.
Fig. 1 As I mentioned in previous discussions, the EUR/USD market was in a downtrend since 2019 to date. As we all know, in a downtrend, there will always be lower lows. Three weeks ago, the bulls stepped in and broke the trend line-A (which was tested 3 times in the last year), which was a sign for a change in trend. Then an excessive lowest low formed last week, which was the result of the global COVID-19 news, and the market is still in a downtrend. Now it could go both ways, depending on how the next week will end. It could make a higher high, or an even lower low.
In my view I will have to keep an eye on the trend line-A. If it gets tested again, then I can prepare for a
lower low, if the trend line breaks to the upside, then I can prepare for a
higher low. The fact is next week is going to be a bearish week, so how low the
week will end depends on the strength of the trend line.
Fig. 2
The
above Fig. 2 show the Euro is above the US dollar, which could mean the Euro is getting
stronger. No one can say for sure, but the crossover seems quite interesting. I
am very excited to see what is going to happen next week, and to show you how
the information will unravel as the week progresses.
Fig 1.2
Fig. 1.2 shows it broke the trend line to
the upside as well as a support level.
Fig 1.3
Fig. 1.3 shows the month view, how it is holding a
trend since year 2000. It is still currently a sellers’ market, but getting
close to the bulls. Breaking the trend line to the downside, could be
catastrophic for the EUR/USD.
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