EURUSD analysis : We’ve seen a huge sell-off in the euro over the last couple of days, with the pair now trading almost 400 pips off its 2013 highs, set a little over a week ago. It did find support this morning, around 1.3450, previously a key level of resistance, before pushing higher. This could prove to be a key level for the pair. If this holds, it may suggest that the pair is still bullish, and the aggressive sell-off we have seen is simply a retracement. A daily close above the 50-day SMA and 50 fib level would also support this, and potentially lead to the formation of a hammer, another bullish signal. Alternatively, if this level is broken, it would suggest that the pair is looking a lot more bearish now. The weekly chart supports this view, with last weeks candle completing a bearish engulfing pattern. If the pair has turned more bearish in the long term, we could still see a short term move higher, as traders take a breather following such a sharp move lower. With this in mind, it’s worth keeping an eye on the Fibonacci retracement levels for a potential bearish reversal. The 38.2 and 50 fib levels both roughly coincide with a previous resistance levels and could therefore potentially be the target for those looking for short opportunities. If we do see this big support level broken, further support should be found around 1.34 and 1.3324. find more on signals-provider/
Posted on: Tue, 05 Nov 2013 09:20:54 +0000
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