EUR/USD Risk for Longs Moved to 1.3020
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
FOREXAnalysis: Wrote yesterday to “respect potential for a deeper drop but 1.2934/67 is viewed as an area of support.” Monday’s late 1.3020 was as low as the EURUSD dropped. Trade since the 4/11 high was the largest correction in price and time since the post NFP 1.2744 low. 2 equal legs from the low would yield 1.3414. The 50% retracement of the decline from 1.3710 could produce a reaction but 1.3320/40 (2/25 high and 61.8% retracement) is still viewed as the more important level. Keep the 2010-2011 analogy in mind too.
FOREX Trading Strategy: Put out this chart this morning, indicating a breakout opportunity. From here, I’m looking to buy dips as close to 1.3110 as possible. We could get that chance if there is another washout in gold, which would likely force liquidation across capital markets.
LEVELS: 1.3020 1.3057 1.3137 1.3227 1.33071.3414