The Euro is struggling to establish downside follow-through against the Japanese Yen after prices put in a bearish Dark Cloud Cover candlestick below resistance at 143.82, the 100% Fibonacci expansion. A daily close below support at 142.63, the 76.4% Fib, initially exposes the 61.8% level at 141.89. Alternatively, an upward reversal above 143.82 aims for the 123.6% expansion at 145.01. Risk/reward considerations continue to argue against taking a short position with prices trading in close proximity to relevant support. On the other hand, a long position taken on the assumption that support will hold seems premature without a defined reversal signal. We will continue to stand aside for now.
Posted on: Thu, 13 Mar 2014 02:29:14 +0000