EUR/USD Technical Outlook – May 29th
- Although fundamental drivers do remain negatively bearish, the technical outlook has improved a bit. Recent developments are pointing towards a potential reversal in the Euro for the short term, which could be exacerbated and extended.
- A nascent bullish diamond bottom pattern has emerged at the end of corrective wave number 5 in the full wave decline ahead of the 1.2500 round figure barrier. The count merges with the completion of the head and shoulders daily formation, at the 1.2500 figure.
- At this point, the 1.2500 figure is expected to hold, bolstering the notion of a climb in the spot price to 1.2809 38.2% fibonacci retracement from 1.3228-1.2503.
- However, the upside potential remains contingent on a break of the 1.2600 barrier, which acts as the top right quadrant of the bullish diamond pattern.
More on the EURUSD - EUR/USD Technical Outlook – May 24th