Our assessment of the trend for EURTRY has been bullish since July 2016 after the spot crossover of the 21 week moving average (a golden cross) confirmed a marginally earlier cross in our RSI indicator.
Throughout the latter part of 2016 and the beginning of this year, those averages, and even the 13 week line, have supported that positive bias in EURTRY.
February through April saw profit taking develop in EURTRY with the RSI indicator showing an aggressive negative break below its moving average. But, on a closing basis, the 21 week line held spot EURTRY and maintained our positive bias for the cross.
This has been justified with last week’s strong move higher, using the average as a platform for gains of 16 big figures and a move to the highest levels traded since February. In addition, RSI has made a tentative positive cross.
Our 4.0165 target was clearly exceeded and we’re now focusing on the 4.0680/0840 area. A clear move beyond that would re-target this year’s peak.
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