Yesterday, EURUSD tested the broken resistance as a closest support. That resistance was a wide area around the tops from the December and January. The price went there as expected and bounced from that level in accordance with the main price action principle. Today, we do have a continuation of this movement, which adds a bullish confirmation. Watch out for the double testing though! Before going long, the price may want to test the green area again.
EURCHF is also bullish. Yesterday, the price made a major upswing, which confirmed the double bounce from the 1.12 area. That is a super important long-term support and a bounce here brings us a buy signal. In addition to this, EURCHF broke the long-term down trendline (blue), which is an additional confirmation. First target is on the yellow resistance but in the long-term, we should go much higher.
Last one is the GBPUSD, where instead of a major bullish reversal caused by the double bottom formation, we do have a mid-term head and shoulder bouncing from a strong resistance. Today, the price is breaking the neckline of this formation, which can be perceived as a signal to go short. I would be more cautious and wait for the breakout of the horizontal support first.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis
This article was originally posted on FX Empire
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