The break and close above downtrend resistance at the end of last week is an indication that a medium-term low is in place for EURUSD, according to Tony Sycamore, Director of Australia-based TECHFX TRADERS.
Sycamore says last week’s close above 1.1000/20 suggests that a low is in place at 1.0879. He warns, however, that the next upside test lies at 1.1111 (the September high) ahead of a layer of heavy resistance between 1.1220 and 1.1300 (see Chart). He thinks it would take a move above 1.1300 to confirm the low at 1.0879 and that a change of trend has occurred. His short- to medium-target for EURUSD is the 200-day moving average around the 1.1220 area.