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FOREX Trading: EUR/USD Focus is on 13200 for Next Long Opportunity

By , Sr. Technical Strategist
16 January 2013 14:22 GMT

Afternoon Technicals (all charts)

Other TA (crosses, COT, etc.)

FOREX Trading and Technical Analysis Observations

EURUSD longs taken late yesterday were stopped out at breakeven (13275). The correction probably lasts the remainder of the week but levels that may produce a low are the 50% and 61.8% retracements of the rally from the 1/4 low at 13200 and 13150. The levels line up with former pivots as well. The former level is reinforced by former trendline support turned resistance (blue line on chart).

The EURAUD decline from 12710 would consist of 2 equal legs at 12612 but Fibonacci retracements don’t begin until 12575 (38.2% of 12357-12710). The 50% at 12533 is reinforced by former resistance from the 1/8 high at 12529. Be picky…let the correction play out this week or take advantage of a sharp drop into 12529/75.” Currently at 12580, we may get an opportunity to buy weakness tonight or tomorrow on event risk out of Australia.

The EURJPY is nearing potential support from former resistance (1/2 high) at 11598. Potential trendline support comes in at about 11520 today and increases roughly 35 pips per day. Keep in mind that January’s opening range was broken to the upside and the monthly low is 11354.

EURUSD - Daily

FOREX_Trading_EURUSD_Focus_is_on_13200_for_Next_Long_Opportunity_body_eurusd.png, FOREX Trading: EUR/USD Focus is on 13200 for Next Long Opportunity

Prepared by Jamie Saettele, CMT

EURAUD –Daily

FOREX_Trading_EURUSD_Focus_is_on_13200_for_Next_Long_Opportunity_body_euraud.png, FOREX Trading: EUR/USD Focus is on 13200 for Next Long Opportunity

Prepared by Jamie Saettele, CMT

EURJPY – Daily Bars

FOREX_Trading_EURUSD_Focus_is_on_13200_for_Next_Long_Opportunity_body_eurjpy.png, FOREX Trading: EUR/USD Focus is on 13200 for Next Long Opportunity

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 ForexMarket.

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16 January 2013 14:22 GMT