I did a charting on Euro Foreign Exchange pair with US dollar, interestingly Euro is way undervalue, Euro has lots of upside potential with current devaluing US dollar surrounding President Trump fiscal policy and his desire for a weakening US dollar to boost exports of US good and services hence contributing to the growth of US employment rate.
Theme: theoretically value of the dollar will rise when expectations of real interest rates hike and treasury yields is an indicator. Value of Euro will see backtest of 1.40 upper end of price channel should European Central Bank embark on tightening monetary policy cycle from their loose monetary policy such as quantitative easing to devalue Euro.
https://www.cnbc.com/…/trump-lots-of-bad-things-happen-with…
Euro has hit all time low at approximate 1.03 and all time high 1.60 against US dollar.
There is a huge falling wedge chart pattern display illustrated by a black color trend line.
Currently, i would expect Euro to gain strength medium term to long term target of first target 1.20, second target 1.30 and lastly target of 1.40.
As illustrated, yellow color neck line refers to the classical support line hence we obeserve that there is a price channel in between 1.20 to 1.40.
how do we determine oversold and support area is getting lower band price channel 1.20 X 0.85 = 1.02
overbought region and caution resistance area is getting upper end of price channel 1.40 X 1.15 = 1.61.
Disclaimer: All news, information and charts shared is purely by my research and personal views only. This is not a trading recommendation or advice but on the basis of sharing information and educating the investment community. Different traders and investors adopt different trading strategies and risk management approach hence if in doubt please approach or seek clarifications with your Financial Adviser, Broker and Banker.