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EURUSD technical analysis - bullish view prevail

EURUSD Tech analysis by Simon Kazinsky on 20:11 June 28, 2016 EST

The European Union is breaking up. For first time ever in its history a member will leave, voluntarily the union. This would intuitively prompt anyone to think the euro should collapse on the unexpected news last week.

However, from a technical perspective, we have been insisting in the last few EURUSD technical analysis that the pair appears to be in a new bull cycle.

The British pound collapsed by most ever on a single session when the news unveiled on late Thursday however, as can be seen on the chart, EURUSD considering the circumstances behaved quite well and lost only 4 cents, a move that can occur easily on less extreme scenarios such as a FED or an ECB announcement.

The pair briefly pierced the last long term support but bounced from there and now trades in between some relevant Moving Averages. If EURUSD rises above 1.1350 it will add further confidence to my view. The soft target remains around 1.20 a previous support turned resistance.