Forex Trading: Staying Long EUR/USD for Wednesday
EURUSD focus is on 13030 (61.8% retracement). Given event risk tomorrow (Fed), I’d not be surprised to see an emotional market that spikes through that level and into 13065. Interim resistance is expected at 12975. Ultimately, the rally from Friday’s low is expected to prove corrective before lower prices are registered later in the month.
EURJPY longs from 10640 were just exited this morning at 10700. The rally has stalled at the 61.8% of the decline from 10795. This level is defended by the 11/25 high and 12/5 low. Given the importance of the level, I’m exiting longs from yesterday. The near term picture is constructive above 10646 but the ‘easy’ part of this trade is over.
--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com
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Jamie is the author of Sentiment in the Forex Market.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.