Daily Bars
Prepared by Jamie Saettele, CMT
“The area in front of 12800 is proving strong as support, which raises the specter of a more pronounced bounce. Initial resistance from the 38.2% retracement of the decline from 13071 was nearly reached. A push through would probably result in a test of the 61.8% retracement / 9/21 high at 13030/47. A drop below 12802 would eliminate anything constructive in the near term and shift focus to the much discussed 12740/50.” It’s instructive that the EURUSD hourly bar on the London close was a JS Thrust (large range) and failed just above the 38.2% retracement and 9/28 high. The 3 wave advance from 12802 and failure at the level raises the specter that a secondary top is in place and that the EURUSD is headed for the well-defined 12750/50. Interestingly, a drop from Tuesday’s high would equal 61.8% of the 13172-12802 decline at 12739 (exact same level as the 38.2% retracement of the rally from the June low). I am on the lookout for short opportunities on intraday charts.
LEVELS: 12754 12802 12876 12935 12967 13010/30
