EUR/USD long at current levels after deeper correction but only mid-term

EUR/USD

Date: July 12, 2016

D1 Chart: W1 trend is short, but  D1 Choppy/long

The price at this currency pair made a correction to Fibo 61,8%/1,09100 after it rose to 1,6100 and now it's again on the rise. Mid-term long is more probable. It looks like there are more supports than resistances.  A couple of times the pair got support at levels 1,0900. Doji and Hammer formation for trend reversal, close to 1,0900 at support for short-term/mid-term long.

Alternative scenario: If the price breaks below 61,8% Fibo, this will change the bear scenario

DEM (14) - at overbought zone with divergence for long.

Fundamental analysis: At the moment FED will not increase the interest rates and this may continue till the end of the year. The tendencies in Europe are clear for now and this may give preponderance to euro in short-term and mid-term plan. In a long-term, US economy is stronger and on the rise, while in Europe there is no such growth and this leads for a stronger dollar and short for the currency pair but right now the sentiment is for stronger euro.

SL: 1.0900

Read more:

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• EURNZD a possibility for new short positions