EUR/USD 1.3200 Could be Stiffer Resistance than Many Think

4Hour

eliottWaves_eur-usd_body_eurusd.png, EUR/USD

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: Wrote yesterday that “the EURUSD traded into the April high and didn’t come off until Tokyo opened (which reminds me of the story in The New Market Wizards, when Bill Lipshutz had to wait for Tokyo to open to get out of 3 billion D-mark short). From here, watch for market responses at high volume areas of 1.3242 and 1.3294 (post FOMC close).” Keep those levels in mind but don’t lose sight of the fact that 1.3200 held all day and has produced important tops in recent months (April high and 5/8 high). The post Tokyo low was registered a few pips below the month open.

FOREX Trading Strategy: Estimated resistance before the high is 1.3160 to 1.3180. In these market conditions the closest level to sell against is the June high (1.3415) though. Prefer to see what happens Friday…we’ll either get a better level (1.3240 or 1.3290) next week or have a setup with tighter risk at a lower level.

LEVELS: 1.2887 1.2947 1.3009 1.3170 1.32421.3294