Euro Reverses Shy of Former Low, 20 Day Average
Prepared by Jamie Saettele, CMT
I wrote yesterday that “a test of the January low remains possible but today’s rally may be the beginning of the rally that serves to correct the decline from the May high (which is best counted as a leading diagonal). Focus on near term levels for risk control (as always). Near term resistance comes in at 13210 (11/25 low), 13260 (20 day average), and the 5th wave channel at 13360 today.” The EURUSD spiked higher this morning before reversing just shy of the 11/25 low. Bottom line here is that Monday’s low’s serves as the pivot. A drop below would favor a test of 12858. Holding above that level keeps a near term recovery intact.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.