The second quarter of 2010 has just passed away. It was remarkable for the permanent strengthening of the US Dollar to the common European currency. Of course, the layout of the kind is reasonably predictable from the technical point of view – if to numerate the symmetrical waves it’s easy to see the reversing pattern at the monthly chart of the EUR/USD cross.
That’s why the end of the quarter couldn’t have come at a better time. Probably, the beginning of July will be a pivot point for the next 6-month upgrading cycle for the pair of EUR/USD.
At the below histogram, the main waves of the shaped pattern are marked with the blue lines, while the red arrows point at the development of the symmetrical structure in compliance with the market records. In other words, there’re all preconditions for forming of the [d]-wave and price’s overwhelming of about 23 patterns (2 300 points) during nearest biannual. The RSI resides next to the oversold degree, and its values prepossess more optimism for the “Bulls” of mid-term trading.
From there, it’s reasonable to explore the mid-term purchasing of the cross of EUR/USD for the second half of 2010 thoroughly, and so make the short-term forecasts guided by this general scheme.
Analysis prepared by:
Maxim Dmitrievsky
Forex4you analyst