Guest Commentary: Where are the Next 100 EURUSD Pips?!
* The Euro remains so clear within pivotal 1.21-1.24 consolidation that we do not have to beg the medium term question…yet.
* Weakness should therefore continue to fade for another opportunity to cover/sell above the 50% channel line.
* Only as the second rally fades below key 1.2405 can we see a threat to key 1.21 Fibonacci support.
The Euro duly faded below the 1.2175 (1.236 multiple target) to confirm the end of a declining wedge from the 1.2335 recent high and therefore a full trend sequence from the 1.2690 high and therefore continues to beg the consolidation versus trend issue well into next week.
Although it is struggling with 1.2255 50% channel resistance, an ideal initial target for this squeeze will be 1.2285-90 23.6% stranding longs before 1.2335. Although this is likely to fade for a retest of the 1.2175-1.22 low again these should hold for at least a second rally (the C leg) to the start of the wedge at 1.2335 and possibly 1.2365 the 38.2%.
We are still long from 1.2175 with stops below 1.2130 the c=1.618a target but have raise stops looking to exit and eventual resell strength against the 1.2405 pivot for a loss now of 1.265 to open 1.2100 the 1.382 multiple.
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