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FOREX Trading: EUR/USD ’Sell the News’ Trade Still in Play Today

By , Sr. Technical Strategist
12 December 2012 15:11 GMT

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The EURUSD 13030/65 region has been reached and near term pattern suggests that it’s time to start looking lower. I wrote yesterday that “given event risk tomorrow (Fed), I’d not be surprised to see an emotional market that spikes through that level and into 13065. Ultimately, the rally from Friday’s low is expected to prove corrective before lower prices are registered later in the month.” Interestingly, the advance from Friday’s low is best interpreted as impulsive. Regardless, the 4th wave of one less degree at 12995 should be revisited. Strategically, I’m a buyer at 12950 and a seller at 13065. I rarely publish intraday charts anymore, but the current pattern is so clean that a look at the near term is warranted.

The USDJPY triangle thrust appears to be underway. No change: “USDJPY trade since 8283 may compose a triangle. Friday’s FX Technical Weekly provides a detailed look at what may be going on longer term. Near term, the 4th wave interpretation suggests a terminal thrust higher through 8283. Watch 8356 for a reversal. As mentioned last week, I don’t like a long idea based on the reversal following NFP. Reversals on news are often liquidity events that mark the end of a larger move.

The AUDUSD is nearing a confluence of channels and 14 month trendline resistance. I’d be willing to fade (short) a spike above 10600 post FOMC.

EURUSD – 60 Minute Bars

FOREX_Trading_EURUSD_Sell_the_News_Trade_Still_in_Play_Today_body_eurusd.png, FOREX Trading: EUR/USD 'Sell the News' Trade Still in Play Today

Prepared by Jamie Saettele, CMT

USDJPY – Daily Bars

FOREX_Trading_EURUSD_Sell_the_News_Trade_Still_in_Play_Today_body_usdjpy.png, FOREX Trading: EUR/USD 'Sell the News' Trade Still in Play Today

Prepared by Jamie Saettele, CMT

AUDUSD – Daily Bars

FOREX_Trading_EURUSD_Sell_the_News_Trade_Still_in_Play_Today_body_audusd.png, FOREX Trading: EUR/USD 'Sell the News' Trade Still in Play Today

Prepared by Jamie Saettele, CMT

--- 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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12 December 2012 15:11 GMT