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  • The market  attempting to base near term, testing 21-DMA.
  • Dips lower to  find support at the 55-day ma at 118.32/28.

Now testing the 21-day moving average and a  61.8% Fibonacci confluence, overcoming  the 6-month downtrend at 118.77 and rising from  116.58/115.87 recent lows of late, the cross is now up to test the above the 120.00/05 (recent high and 38.2% Fibonacci retracement) and bulls are well on their way to the  June lows at 120.79/96 which comes before the 121.38 late July high and the 200-day moving average of  122.32.

“The market is possibly attempting to base near term and the close above 120.05 adds weight to that view. Dips lower will find support at the 55-day ma at 118.32/28 ahead of the 117.45 uptrend,” analysts at Commerzbank argued.  On the downside and wide, bears can target  115.87 ahead of the 2017 low at 114.86.

EUR/JPY weekly chart