EURUSD: Recovery saw EUR taking back its previous week losses to close higher the past week. This development has left EUR targeting further upside towards the 1.3207 level with a break turning attention to the 1.3297 level. A cut through there will aim at the 1.3450 level. Its weekly RSI is turning higher supporting this view. Conversely, a reversal of its past week gains will turn downside risk towards risk the 1.2755 level with a turn below here shifting attention to the 1.2700 level and then the 1.2600 level. All in all, EUR has turned higher on corrective rally.
I think E/U will reach 1.3250 (the 76.4 level of the Fibonacci retracement drawing from the Jun 19 high to the Jul 10 low) before dropping (very hard).
Hello Scalptastic, I also see higher probability for an upside move.
We got a decent selloff after German macro news. I am still not convinced about major move to downside.
Market structure shows slighty stronger buyers. I consider yesterday´s high as weak and expect it to be tested. Moreover today´s low sofar is made on solid supports from higher time frames.
It will be important what happens in the afternoon when US macro news are released. If we get another selloff I might change my short term bias to short side.
EURUSD - Leaning on market structure and patience paid off today. I took a long trade and closed it at yesterday´s high, since I expected it to be tested (read my morning tweet). I attach picture from today´s morning I posted on forum.
Now I took agressive sell position @1,3285 which I am willing to build if the current upside move continues.
Now I will wait for further development to get more clues on another trade. It is end of week that was EUR positive so we might get some profit taking in the afternoon a work back down to 1,3200. But I have not ruled out yet another test above 1,3300. We will see. Better to wait for clues.
Yes, your profit taking makes sense as pullback is underway. With the pair failing to build on its Thursday gains, consolidation is now seen. We may see it attempt on the 1.3295/1.3300 levels after ending its present bear threats.
I will be on vacation this week, so I will post only sporadically. I am waiting for excess to form on EURUSD and then I want to enter short trades. I see 1,3000 as a good target.
I took long trade yesterday morning since I was also expecting test into the important resistance area. It worked out nicely but I had to be a bit patient, since European session was in narrow range and the move came only after US markets open.
I am not so convinced yet. I expect test of major reference high @ 1,3415. I am curious if sellers step in around there. No sign of big / agressive sellers in EURUSD yet.
It is also important to note that we are in growing market since Monday and I would expect some profit taking before weekend.
My longer term bias is to the short side. I am waiting for signs of sellers and then I will open short position.
