In this analysis, we examine the future direction of EURUSD by presenting and analyzing TCI technical results for the coming weeks. Additionally, all key upcoming news events are listed in individual tables for EUR, USD, GBP, JPY, CAD, CHF, AUD, and NZD. Overall, it appears that EURUSD has entered an overbought zone, but the timing of a potential downtrend reversal remains uncertain. Before continuing, here is a brief recap of our previous report on EURUSD, GBPUSD, and USDJPY, along with some key details.

📄 The Previous TradingCenter's Report

In our previous report, we stated that the US Dollar was expected to strengthen in the long term. However, we also noted that major USD pairs (EUR, GBP, and JPY) were likely to experience corrections, as they had already reached oversold levels. These corrections were anticipated to occur after a few weeks, but they took place much sooner, triggered by a speech from the FED chairman. At that time, EURUSD had already reached the strong support level of 1.2750, as shown in the following chart. Our long-term forecast remains unchanged—we continue to expect the US Dollar to strengthen, particularly against the Euro.

📶 EURUSD -What Should We Expect Next

The most likely scenario is that, following a short-term downtrend correction over a few days, EURUSD will attempt to reach a new high. Whether it succeeds in forming a new high or not, EURUSD may still appear overbought. However, this is simply the natural progression of technical analysis. Significant news related to the Euro and the US Dollar could alter this technical outlook. All key upcoming news affecting EURUSD is listed at the end of this report. Below is an MT4 chart for EURUSD, including the RSI and 50-day Moving Average.

Chart: EURUSD with Moving Average 50 days and RSI (14)

⚙️ Current TCI Technical Analysis on EURUSD

TCI does not provide a clear outlook for the future movement of EURUSD. Both TCI-Short and TCI-Long indicate that EURUSD has entered an overbought price zone. However, when examining the historical TCI-Short and TCI-Long charts (2009–2013), it becomes evident that the current overbought signals are not extreme.

Below are the TCI indications for EURUSD for the upcoming weeks.

{slider=TCI Table on EURUSD}

📈 TCI Historical Chart on EURUSD (2009-2013)

The following chart includes historical TCI indications for EURUSD during the period 2009–2013. The charts are arranged to help identify the historical range of overbought and oversold levels. For TCI-Long, the +40% level has historically signaled major reversals. For TCI-Short, levels at +10% and above have consistently indicated clearly overbought conditions for EURUSD.

Chart: TCI on EURUSD (2009-2013)

■ EURUSD Technical Analysis Report, News, and TCI Free Forex Signals

G. Protonotarios for Trading Center, July 27th, 2013

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