The European single currency has been showing first signs of rebound. After the price was falling during 6 days by 500 points, the European currency started to get corrected in an uptrend. The previous trading day closed with a white candlestick. Today a number of fundamental factors are decelerating the growth of the European currency, yet a series of important technical signals for buying have been already clear.
The first signals to buy were produced by the Accelerator Oscillator. Despite a downward tendency, the current trading day shaped an uprising bar of the histogram, thus giving a signal to open a buy position. There is no signal from the Awesome Oscillator yet.
The Stochastic Oscillator is about to present another signal. The day chart must have already received the base oscillator signal. The %K line is to cross the control level 20 from the bottom upwards, which will in fact be a signal to open long positions.
Recommendations:
Basic target — 1.4457
A possible rebound, short-term correction or consolidation — 1.4156
Basic support — 1.3960
Supplementary support — 1.3908 - 1.3836
Attention! If you want to learn about the graphical analysis and Fibonacci trading, you are welcome to attend my Graphical Analysis webinar on September 12! Read more!