EUR/USD Trendline Proves its Worth; Outside Day Bearish Break
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
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FOREX Analysis: Wrote Wednesday that “the EURUSD spiked into the trendline that extends off of the February and June highs as well as the 61.8% retracement of the decline from the June high. The several false starts (several outside days) on the downside and significantly waning momentum (240 min RSI isn’t even above 60) warn of an imminent reversal. The advent of a new month doesn’t hurt reversal prospects either.” Price has retraced Wednesday’s advance, suggesting that the outside day was exhaustive in nature.
FOREX Trading Strategy: I STILL see GBPUSD as the better trade with EURUSD as supplemental. Am looking for a top Friday between 1.3280 and 1.3300…will have charts in the morning before NFP with an update and trade idea IF it’s there.
LEVELS: 1.2993 1.3094 1.3165 1.3240 1.3300 1.3344
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.