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Since 2008, EUR-USD has been in consolidation with price actions from 1.60373viewed as a corrective pattern. Since hitting a 2 ½ year high at 1.39929 on 8 May, this market has come under selling pressure and over the last 4 weeks, these selling has accelerated - hitting a 14-month low at 1.28588this week and is poised to gun for 1.26-1.27 level. From the W1 chart, there is no significant support until 1.2660-1.2750. Sustained break below price bracket could see another round of sharp losses towards the 2012 low of 1.20414. But from the perspective of the MN chart, this fall may well be heading towards the 61.8% retracement of 0.82250 to 1.60373 at 1.12093. EUR-USD Medium to Short-Term Outlook Having rebounded from a 14-month low at 1.28588on Tuesday, price action traded into a minor overhead supply pocket at 1.29727-1.29879 on Friday.This level is located in between the 38.2% retracement of 1.35193 t 1.28588 at 1.29736 and the 100.0% extension of 1.28588 to 1.29621 from 1.28830 at 1.29836(refer to H1 chart). So far, this rise is corrective in nature and may have hit a peak at 1.29788on Friday and may well turn lower early next week. In the short to medium-term, a break of 1.28588would means the resumption of the fall towards the 61.8% retracement of 1.20414 to 1.39929 at 1.27869(refer to W1 chart). This level is located just above a major demand zone at 1.26602-1.27786in the D1 chart. Alternatively, if this rebound from 1.28588extends higher, topside potential is probably limited to the 23.6% retracement of 1.39929 to 1.28588 at 1.31264 and the September 3 high at1.31593. TRADE IDEA #1 TRADE IDEA #2 Sold at1.29729-1.29879 Sell between 1.30110-1.30394 Stop-Loss: Exit on H4 close above 1.29879 Stop-Loss: Exit on H4 close above 1.30400 Primary Target: 1.27786 Primary Target: 1.29100 Secondary Target: 1.27045
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