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EUR/USD Responds to Support from Trendline and August High

EUR/USD Responds to Support from Trendline and August High

Jamie Saettele, CMT, Sr. Technical Strategist

Daily

eliottWaves_eur-usd_body_eurusd.png, EUR/USD Responds to Support from Trendline and August High

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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-The failed break above the February high is a bull trap. We’ve seen this before. In fact, such trade has become standard procedure in this market since 2009. The 2009 high occurred on November 4th.

-I pointed out in Friday’s weekly that, “near term supports for a bounce are the June high at 1.3415 and the August high at 1.3451. Watch specifically for a EURUSD print below the October low of 1.3472 WITHOUT a USDCHF print above its October high of .9177.” The divergence played out but price is now nearing resistance.

-Price is holding trendline support. Estimated resistance is Friday’s European session high at 1.3565. Exceeding Friday’s high would expose 1.3650.

Trading Strategy: Order to short at 1.3565, stop 1.3610 (above the first day of the month high). Target half at 1.3300 (just above midpoint of year’s range). There is an uncovered close at 1.3296 (9/13).

LEVELS: 1.3385 1.34151.3478 | 1.3565 1.3600 1.3650

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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