Yesterday, the EURUSD slipped from its bullish channel between the upper blue and red bands. Today, it is looking to reclaim that position. The daily RSI is above 50. The longer it maintains on the bullish side of 50, the greater the chances of higher prices ahead.
The hourly chart has positive aspects to it. The trend-following EMAs and the momentum-based stochastic have crossed up (black ellipses). The EMAs have started to develop angle and separation to the upside, and the stochastic is above 80 (blue arrow). If the stochastic can maintain its current position, an underlying bullish momentum will be present. This will support EURUSD.
German ZEW Economic Sentiment is due to be released at 9:00am GMT. Forecast is for 15.5 compared to the previous print of 13.0.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.