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EURUSD Correction in Play- Short Scalps Eye Break of 1.3000

By , Currency Strategist
15 July 2013 18:33 GMT

EURUSD Daily Chart

Forex_EURUSD_Correction_in_Play_Short_Scalps_Eye_Break_of_1.3000_body_Picture_2.png, EURUSD Correction in Play- Short Scalps Eye Break of 1.3000

ChartCreated Using FXCM Marketscope 2.0

Technical Outlook

  • EURUSD Objectives at 1.2877/88 triggered earlier in the month- Rebound failed at April high
  • Near-term may see period of consolidation before resumption of broader downtrend
  • Key Daily Support still at 1.30-handle- Scalp bias bullish above this mark
  • Break sub 1.30 targets objectives at 1.2877/88 and 1.2750
  • RSI holding 50 support- Still some upside possible here before encountering trendline resistance
  • Break above 1.31 (with RSI 60-Breach) targets objectives at 1.32, 1.3274, and 1.3340 (Key)
  • Key Events Ahead: Fed’s Beige Book, Humphrey-Hawkins Testimony on Wednesday & Thursday

EURUSD Scalp Chart

Forex_EURUSD_Correction_in_Play_Short_Scalps_Eye_Break_of_1.3000_body_Picture_1.png, EURUSD Correction in Play- Short Scalps Eye Break of 1.3000

Scalp Notes: Although our longer-term bias remains weighted to the downside, this key support barrier may offer near-term scalps into resistance levels with a breach above 1.3085 targeting subsequent topside targets. It’s important to note that the RSI signature has been rather bearish since the start of Sunday trade with only a breach above the 60-threshold (with price action north of 1.3085) offering conviction on near-term long scalps. Such a scenario looks for new highs with longs into the monthly high warranted. Break back below 1.30 puts our subsequent support objectives into play. Bottom Line: looking for a break of the weekly opening range (1.2992- 1.3082) to offer further conviction on a near-term directional bias. Longer-term bias remains bearish below 1.3340.

* It’s extremely important to give added consideration regarding the timing of intra-day scalps with the opening ranges on a session & hourly basis offering further clarity on intra-day biases.

Key Threshold Grid

Entry/Exit Targets

Timeframe

Level

Significance

Bearish Invalidation

Daily / 30min

1.3073/84

23.6% Fib Ext / 50% Retracement

Break Target 1

30min

1.3120

Soft Resistance / Pivot

Break Target 2

Daily / 30min

1.3162

61.8% Fibonacci Retracement

Break Target 3

Daily / 30min

1.3200

Big Figure / July High (1.3205)

Break Target 4

Daily / 30min

1.3235

Soft Resistance / Pivot

Break Target 5

Daily / 30min

1.3274

78.6% Fibonacci Retracement

Bullish Invalidation

Daily / 30min

1.2996- 1.3006

3-Way Fib Confluence

Break Target 1

30min

1.2963

78.6% Fibonacci Extension

Break Target 2

30min

1.2910/20

100% Fib Extension / 23.6% Retrace

Break Target 3

30min

1.2880

Soft Support / Pivot

Break Target 4

30min

1.2850

Soft Support / Pivot

Break Target 5

30min

1.2820

88.6% Retracement

Average True Range

Daily

120

Profit Targets 26-29pips

Reviews today’s Scalp Webinar for further insights and current trade setups

For updates on this scalp and more setups follow him on Twitter @MBForex

---Written by Michael Boutros, Currency Strategist with DailyFX

To contact Michael email mboutros@dailyfx.com or Click Here to be added to his email distribution list

Join Michael Tuesday, Wednesday and Thursday mornings for a Live Scalping Webinar on DailyFX Plus (Exclusive of Live Clients) at 1230 GMT (8:30ET)

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15 July 2013 18:33 GMT