Daily Observations: December 4, 2012
- Long EUR/CHF from 1.2018, Stop at 1.1990, Target 1 at 1.2500, Target 2 at 1.2750
- Short EUR/USD from 1.3110, Stop at 1.3150, Target 1 at 1.3030, Target 2 at 1.2990
- Long USD/JPY from 80.65 (1/2), Stop at 80.75 (daily close), Target 2 at 83.30
Time Frame: 1-day to 1-week
I've taken a short EUR/USD position based on the fact that the pair has entered a zone of previous supply/demand numerous times in recent months. In the 1.3110/30 zone, there are former swing highs (9/14-18, 10/17-18) and the weekly R2, thus with the alignment of the 1H, 4H, and daily RSIs all in overbought territory, I believe that this market is overextended and a pullback should be expected over the coming days.
--- Written by Christopher Vecchio, Currency Analyst
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