Euro Corrective Rally Presents Bearish Opportunity
Written by Jamie Saettele, Senior Currency Strategist
Dailyfx.com provides free news, trading resources, and market analysis to the trading community.
An upward correction in the euro / dollar is underway that presents bears an opportunity against 1.2932.
The EURUSD may have completed wave i of 5 down. A correction is underway in wave ii. There are 2 levels to watch for resistance; 1.2636 (former 4th wave) and 1.2721 (61.8% of 1.2932-1.2386). These are areas to expect a top and rallies to there would present opportunities to get short against 1.2932. Long term, the trend remains down as long as price is below 1.2932.
The larger USDJPY trend is down so strength should be sold. It is unclear though whether or not the rally from 90.86 is complete. As long as price remains below 99.52, bearish potential is significant. However, support from the 61.8% of 90.86-100.60 is a warning that 100.60 could be broken (since 61.8% is a level that tends to hold B waves of zigzags).
The GBPUSD decline has accelerated and dropped to a new low as expected. Still confined to a steep channel, Cable remains in an impulse. I wrote yesterday that “the drop to a new low satisfies minimum expectations for wave 3 of C but additional downside is likely. Monthly pivot support is at 1.4933.” Having already dropped 130 pips below 1.4933, there is no sign of a bottom, although a 4th wave (of C correction) will eventually take hold prior to a drop below 1.3680.
Click HERE to see the rest of this article, with further analysis of the USD/CHF. USD/CAD, AUD/USD, NZD/USD
Dailyfx.com provides free news, trading resources, and market analysis to the trading community.
Written by Jamie Saettele, Senior Currency Strategist
Dailyfx.com provides free news, trading resources, and market analysis to the trading community.
An upward correction in the euro / dollar is underway that presents bears an opportunity against 1.2932.
The EURUSD may have completed wave i of 5 down. A correction is underway in wave ii. There are 2 levels to watch for resistance; 1.2636 (former 4th wave) and 1.2721 (61.8% of 1.2932-1.2386). These are areas to expect a top and rallies to there would present opportunities to get short against 1.2932. Long term, the trend remains down as long as price is below 1.2932.
The larger USDJPY trend is down so strength should be sold. It is unclear though whether or not the rally from 90.86 is complete. As long as price remains below 99.52, bearish potential is significant. However, support from the 61.8% of 90.86-100.60 is a warning that 100.60 could be broken (since 61.8% is a level that tends to hold B waves of zigzags).
The GBPUSD decline has accelerated and dropped to a new low as expected. Still confined to a steep channel, Cable remains in an impulse. I wrote yesterday that “the drop to a new low satisfies minimum expectations for wave 3 of C but additional downside is likely. Monthly pivot support is at 1.4933.” Having already dropped 130 pips below 1.4933, there is no sign of a bottom, although a 4th wave (of C correction) will eventually take hold prior to a drop below 1.3680.
Click HERE to see the rest of this article, with further analysis of the USD/CHF. USD/CAD, AUD/USD, NZD/USD
Dailyfx.com provides free news, trading resources, and market analysis to the trading community.