Technical analysts at Mizuho Corporate Bank note that large “bullish engulfing” candle formed yesterday shows that the main trend for the pair EUR/USD is bullish, while the single currency’s down moves are considered to be corrective.

The fact that euro managed to close above the 9-day MA increased the upward momentum. The specialists claim that the pair’s dynamic during the last 2 week should be regarded as an irregular “flag”.

As a result, Mizuho strategists are looking forward to the European currency’s growth to new maximums later this year. According to them, it’s necessary to open small longs at 1.3900 stopping below 1.3670. The first targets of the pair are situated at 1.4000 and 1.4150.



Chart. Daily EUR/USD

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