EUR/USD Inside Day Succeeds Outside Day Friday
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
FOREXAnalysis: Channel support from the 2012 low is just under the low at about 1.2940 on Tuesday. 1.2875 is lining up to be even bigger than previously thought (if reached). The level is defined by the 50% retracement of the rally from the 2012 low, late November low and December low. The former resistance line turned support crosses 1.2875 on 3/25 and 3/26. The extent of weakness from the February high and structure (impulsive case can be made) make it likely that a significant (possibly for rest of the year) top is in place for the EURUSD but the current environment, which is dominated by salacious news headlines, is conducive to formation of a low for a rally back towards 1.3300-1.3400.
FOREX Trading Strategy: Monday’s inside day (after an outside day on news) is consistent with a market turn. Strength above 1.3134 would turn me bullish for at least 1.3350.
LEVELS: 1.2875 1.2963 1.29961.3134 1.32501.3305
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