Technical tools: simple moving averages (20 – the medium line between the upper and lower Bollinger bands, 55 – green line and 100 – blue line), relative strength index, Bollinger bands, Fibonacci retracement levels, channel lines and trendlines.
The following daily chart shows the EUR/USD currency pair exchange rate surging between July 12, 2017 and June 2, 2017. After that period, the currency pair exchange rate reversed the previous mentioned trend and started easing.
Daily SMAs are aligned to expect further bullish developments, with the 20-day SMA (1.1203) above the 55-day SMA (1.0994) and the latter SMA above the 100-day SMA (1.0845).
The RSI is ticking at 49.3 offering a neutral stance.
The exchange rate is currently approaching the lower Bollinger band, signalling further scope for the recent bearish developments.
The following daily chart shows Fibonacci retracements from the low on May 11 till the high on June 14.
The 20-day SMA is curving and it is now bending lower. The 55 and 100-day SMAs are still below the 1.10 level, though the 55-day SMA might move above the previous mentioned level sooner, while the 100-day SMA will likely remain below the 1.09 level till the end of the forecast period.
The ECB revised lower its inflation forecasts for this year and next. Despite euphoria, due to the latest encouraging PMIs and receding populist threat across the continent, several other challenges need to be addressed in a much intelligent way, such as the Greek debt and t…