EUR/USD Rally Could Pause at 1.3130/70
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
FOREXAnalysis: Pullbacks have been shallow since the low, likely leaving many traders short at bad levels. In fact, the biggest pullback since the low is the Sunday/Monday drop into 1.2967. If that level is used as the secondary low (either 2 or B), then extensions yield 1.3263 (100%), 1.3343 (127.2%) and 1.3445 (161.8%). The 100% level is near the 50% retracement of the decline from 1.3710 and the 127.2% level is several pips away from the 61.8% retracement of the decline. 1.3130/70 has been a pivot on multiple occasions since September so respect the potential for the market to pause at that level and pull back. 1.3050/70 is support.
FOREX Trading Strategy: Went long on 4/4 close and scaled out of some of the position today with risk on the rest moved up to 1.3025. A drop below there would have me looking for support at 1.2934.
LEVELS: 1.2744 1.2856 1.29341.3133 1.32271.3307
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