| EURUSD 03-03-10 |
EURUSD
We have enjoyed yet another cycle in our 200+ pip range trade in the past day, and now look to be edging closer towards the final trendline of the major 3 month downtrend channel (discussed yesterday); depending on what happens at this juncture we should get a good idea of whether this leg of the sell-off (that has played out since December) is complete, or whether a further shift down is coming.
That major downtrend upper bound comes in currently around 1.3660 (within 5 pips of the day’s highs), and predictably, the first encounter has seen the pair retrace lower to 1.3620. Nevertheless,the 14-day RSI has been gradually edging higher to 44, so if a subsequent re-test leads to a break above in the coming days, it would signal a significant shift to a correction higher. We would then look to fill our pockets with EURUSD down here looking for a first target of 1.3850 pivot level, and then 1.3950 (target of the triple bottom).
Obviously, if the downtrend line holds and a break through our range lows (1.3425-44) plays out, there are not too many support levels over the precipice; 1.3090 then 1.2890 are the nearest ones of note.
We have enjoyed yet another cycle in our 200+ pip range trade in the past day, and now look to be edging closer towards the final trendline of the major 3 month downtrend channel (discussed yesterday); depending on what happens at this juncture we should get a good idea of whether this leg of the sell-off (that has played out since December) is complete, or whether a further shift down is coming.
That major downtrend upper bound comes in currently around 1.3660 (within 5 pips of the day’s highs), and predictably, the first encounter has seen the pair retrace lower to 1.3620. Nevertheless,the 14-day RSI has been gradually edging higher to 44, so if a subsequent re-test leads to a break above in the coming days, it would signal a significant shift to a correction higher. We would then look to fill our pockets with EURUSD down here looking for a first target of 1.3850 pivot level, and then 1.3950 (target of the triple bottom).
Obviously, if the downtrend line holds and a break through our range lows (1.3425-44) plays out, there are not too many support levels over the precipice; 1.3090 then 1.2890 are the nearest ones of note.
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