EUR/USD Stuck in Neutral; Watch 1.3128 for a Reaction
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
FOREXAnalysis: As focused on last week, “the early April low was registered slightly above the 61.8% of the rally from the 2012 low. The drop from the April high found low right before the 61.8% retracement of the rally from the April low as well. In other words, lows are being registered prior to expected levels. One wonders if the market finding lows before typical relationships are realized is actually a bullish development…after all, an early month low (day 4) is in place, the early month reversal is characterized by large volume (CME), and the reversal saw follow through the very next day.” Near term, focus on the short term upward sloping channel and 1.3128 (4/19 high and where the rally from 1.2954 would consist of 2 equal legs). What happens at that level (break or reversal) will determine near term direction.
FOREX Trading Strategy: Flat
LEVELS: 1.2875 1.2934 1.3014 1.3128 1.31751.3227
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