EUR/USD Key Reversal after Push through 1.3100
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
FOREXAnalysis: Wrote yesterday that “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.” The market responded just before 1.3130 and found support late in the day at 1.3050. Pullbacks remain shallow. The largest pullback since the low is the Sunday/Monday 1.3039-1.2968 drop (71 pips). Wednesday’s drop from high to low is 69 pips. 1.2967 is viewed as the secondary low (either 2 or B), and 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.
FOREX Trading Strategy: Risk on longs from 4/4 has been moved up to 1.3025. A drop below there would have me looking for support at 1.2934 or maybe even 1.2890.
LEVELS: 1.2744 1.2889 1.2934/681.3133 1.32271.3307