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Longer Term Trade Opportunities in EUR/AUD, EUR/SEK

By , Sr. Technical Strategist
13 March 2013 19:53 GMT

With the EUR/USD testing significant support, it’s wise to view other euro crosses for potential trade setups as well as clues regarding EUR/USD prospects.

Euro / British Pound

Weekly Bars

Longer_Term_Trade_Opportunities_in_EURAUD_EURSEK_body_eurgbp.png, Longer Term Trade Opportunities in EUR/AUD, EUR/SEK

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: The EURGBP completed a weekly key reversal (and J Spike) 2 weeks ago. The reversal and resistance from the 50% retracement of the decline from the December 2008 high probably caps gains for wave 3. In Elliott terms, wave 3 within the 5 wave advance from 7751 is likely complete and a 4th wave is probably underway towards 8445.

FOREX Trading Strategy: Sideways for now but look to turn bearish on a break below trendline support (see below).

Euro / British Pound

Daily Bars

Longer_Term_Trade_Opportunities_in_EURAUD_EURSEK_body_eurgbp_1.png, Longer Term Trade Opportunities in EUR/AUD, EUR/SEK

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

Are you new to FX or curious about your trading IQ?

Euro / Australian Dollar

Daily Bars

Longer_Term_Trade_Opportunities_in_EURAUD_EURSEK_body_euraud.png, Longer Term Trade Opportunities in EUR/AUD, EUR/SEK

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

Are you new to FX or curious about your trading IQ?

FOREXAnalysis: The EURAUD has reached important a level that may inspire a bounce. The level in question is the 38.2% retracement of the rally from 1.1604 (August low), 61.8% retracement of the rally from 1.2157 (November low), and pivots since September (circled). If this level fails, then the next area of important support is probably the 50% retracement (from August low), near 1.2400 (also 200 day average).

FOREX Trading Strategy: Viewed in context of the long term change in trend (see below), it’s worth keeping abreast of near term developments. The decline from the February high may be a wedge. If it is, then EURAUD might reach the mentioned 50% level later in March. Strength above the blue resistance line would warrant bullish consideration.

Euro / Australian Dollar

Weekly Bars

Longer_Term_Trade_Opportunities_in_EURAUD_EURSEK_body_euraud_1.png, Longer Term Trade Opportunities in EUR/AUD, EUR/SEK

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

Are you new to FX or curious about your trading IQ?

Euro / Swiss Franc

240 Minute Bars

Longer_Term_Trade_Opportunities_in_EURAUD_EURSEK_body_eurchf.png, Longer Term Trade Opportunities in EUR/AUD, EUR/SEK

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: The EURCHF has climbed steadily since late February, breaking through channel resistance in the process. As noted earlier today on Twitter, the recent reaction lower is in 7 waves and be complete. If today’s low fails to hold, then expect support at the 50% retracement of the rally from 1.2118 at 1.2254 (also early February lows).

FOREX Trading Strategy: Long, but longer term, against the 2012 low towards 1.3240 and 1.3900

Euro / Swedish Krona

Daily Candles

Longer_Term_Trade_Opportunities_in_EURAUD_EURSEK_body_eursek.png, Longer Term Trade Opportunities in EUR/AUD, EUR/SEK

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

Are you new to FX or curious about your trading IQ?

FOREXAnalysis: The EURSEK head and shoulders top that formed from October to February has played out. Today’s sharp reversal occurs from just below the close of the reversal day from August. The close of large range reversal days tend to serve as support/resistance in the future.

FOREX Trading Strategy: Give EURSEK time to setup for longs but today is a good start.

--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com

To contact Jamie e-mail jsaettele@dailyfx.com. Follow me on Twitter for real time updates @JamieSaettele

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Jamie is the author of Sentiment in the Forex Market.

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13 March 2013 19:53 GMT