EURUSD Completes Correction, Long-Term Uptrend Underway?

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EURUSD Completes Correction, Long-Term Uptrend Underway?

EURUSD Completes Correction, Long-Term Uptrend Underway?

On its long-term time frames, it can be seen that EURUSD already completed its correction to the broken neckline of the double bottom pattern. Price bounced off the support area and is on its way to complete the corrective wave, possibly until the 1.1500 major psychological resistance.

EURUSD Fundamental Factors

The Greek debt talks are still ongoing, which lends more uncertainty for the euro zone and its shared currency. Signs that the creditors are not willing to give more accommodating terms to Greece could eventually lead to a default and an exit from the region, which could spur debt contagion talks and further instability for the currency.

On the other hand, news updates that suggest a potential resolution to the prolonged debt crisis could allow EURUSD to rally past the 1.1500 resistance and possibly move up to the next area of interest at 1.2000.

In addition, the upcoming NFP release on Friday could also have a significant say on the pair’s price trends, with weaker than expected data likely to push the pair further north. Impressive jobs readings could convince traders that a Fed rate hike will take place in September though, so this might still be enough to usher back demand for the US dollar.

EURUSD Completes Correction, Long-Term Uptrend Underway?

Price has broken past a bullish flag pattern on its 1-hour time frame, confirming increased upside momentum. At the same time, the moving averages are treading further apart, suggesting that the bullish pressure could increase. Stochastic is pointing up as well, indicating that buyers are in control of price action.

Any short-term pullbacks could find support at the moving averages, which have acted as dynamic support levels for EURUSD in the past. A break below these support areas could indicate that the trend is weakening and that a reversal might happen sooner or later.