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FOREX Technical Analysis: EUR/USD Trades into Trendline Resistance (Again)

By , Sr. Technical Strategist
12 December 2012 22:44 GMT

DailyBars

eliottWaves_eur-usd_body_eurusd.png, FOREX Technical Analysis: EUR/USD Trades into Trendline Resistance (Again)

Chart Prepared by Jamie Saettele, CMT

FOREXAnalysis: Technical reports since Friday have laid out the plan for shorting the EURUSD after the Fed announcement. “Look higher from the current level towards 13030 (61.8% retracement). Given event risk, I’d not be surprised to see an emotional market that spikes through that level and into 13065. The rally from Friday’s low is expected to prove corrective before lower prices are registered later in the month.” The ‘emotional spike through 13065’ took place right after the announcement. Probes of today’s high can’t be ruled out of course but I’d be surprised to see a sustained break through the December high (13126). Structure of the advance from Friday’s low isn’t obviously corrective or impulsive. Regardless, this is a high risk level and we should look lower.

FOREX Trading Strategy: I am short and would look to increase position size on a drop below 13030.

LEVELS: 12951 12995 1303113097 1312613172

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12 December 2012 22:44 GMT