Support at 1.2900 held like a rock!
Due to increased risk appetite and positive developments from Spain, EUR/USD was able to trend strongly upwards yesterday. If you’re a fan of Fibonacci retracement levels, then there were a couple of good setups. Hope ya’ll caught it.
EUR/USD traded above 1.3100 for the most part of the day thanks to Moody’s announcement. Will there be enough demand for the euro to keep it trading above the handle?
Resistance line: 1.3122
Targets of bulls: 1.3153, 1.3183
Support line: 1.3061
Targets of bears: 1.3031 1.3000
so what buy or sell??
Heads up! Here’s the chart review for yesterday. EUR/USD ranged early on but fell towards the end of the day as risk aversion took over. There was a clear sell at the DO when price formed a bearish divergence with the Stochastic. Hope someone caught it!
Resistance line: 1.3061
Support line: 1.3015
Targets of bulls: 1.3076 1.3092
Targets of bears: 1.3000 1.2985
It all depends from what line is broken by the price. If resistance-you go long, if support - short.
No major data was released yesterday, which resulted in EUR/USD moving sideways with a slight upside bias. Buying low (near the Asian low, for instance) and selling high (shorts at the previous day highs) would’ve been a good strategy!
Not much in terms of economic data yesterday. However, risk aversion still dominated market sentiment and sent EUR/USD lower.
Thanks BigPippin, with the EUR/USD continuing downside, do you think we will see 1.29100 today?
I have been turning my attention to FIBO recently. So i went searching for all things FIBO related to trading. Here is a short summary of FIBO summation series.
Start with 1, then add the previous number together to form the next number. Continue to combine the previous number with the new number to get the FIBO numbers. Therefore,
1 + 1 = 2
1 + 2 = 3
2 + 3 = 5
3 + 5 = 8
5 + 8 = 13
8 + 13 = 21
and so on and so forth.
Besides using FIBO to find potential retracement levels, FIBO numbers could be used to time the possible dates for markets to turn. This means market could turn at either day 5, day 8, day 13 and etc. Although it is not precise and may not turn at the exact day, most often it turns close enough to the FIBO numbers.
Making it hard to ignore this as a coincidence. This could be a useful strategy to time market turning points.
Look at the EURUSD daily chart. Note that price peaks at 1.3170 on 13th Sept, which is the week after the announcements of ECB OMT and FED QE3. It is used as the starting point for the calculations.
Watch for day 34. This is the next FIBO number. Because it is not exactly precise but a good estimate, watch for it to possibly turn from day 33 to 35.
Your approximate dates tie in nicely with the USA voting season! So, we should see a bit of volatility?
Well, well, well… It looks like the weaker-than-expected euro zone PMIs did quite a number on EUR/USD! The pair, after consolidating for the entire Asian session, broke out to the downside once the EU session opened. The move wasn’t sustained though, and the pair revisited the DO.
EURUSD is currently resisted by another super long term trendline on the daily. Point 3 of the falling channel was touched last week.
Will EURUSD break above this down trendline? To answer that, lets take a closer look. Lets see the price action on the 4hr chart. There are 2 possible ways to analyze the 4hr chart.
For the bullish traders, EURUSD is in a symmetrical triangle. Symmetrical triangles are usually continuation patterns. Since the trend is up, the bullish traders will want to try bring EURUSD above and outside triangle. Thereby causing the bullish trend to continue.
For the bearish traders, they will try to cause a double top pattern to invalidate the triangle pattern. Since double tops are key reversal patterns, EURUSD should drop like a rock.
My personal preference is to trade the triangle continuation pattern. I am of the bullish side. I think the temptation is there for Spain to take the easy way out. Politicians are not known for their long-sightedness.
Thank you men It helps
Talk about a volatile Friday! Rating downgrades from S&P sent EUR/USD crashing down below 1.2900 but it looks like positive U.S. GDP data helped buoy market sentiment.
