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Thursday 21 January 2016

EUR/USD shor-term doubt



The "Lowest Bottom" line joins the lowest bottom in 2001 to the lowest bottom of 2015 (3 Dec 2015). A strong bounce ensued when the graph hit this line.
 
The "Overall Upslope 2016" is drawn in parallel to previous upslopes and is my attempt at predicting the overall upslope of 2016. An uptrend is necessary because the Euro  is undervalued viz.a viz. the US Dollar.
 
The green triangle encapsulates the movement of the Chart since the spike of 3 Dec 2015.
 
This month (Jan) saw the chart break gently out of this triangle to indicate the present range. The bottoms of the upswings of this month have been rising, but the tops have remained level. Either the top line or the bottom line must soon give way.
 
It remains to be seen whether the movement will stay within the purple box or drop the bottoms to the dotted green line. Long term bullish , but short-term undecided.

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