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EUR/USD Levels are Well-Defined for post-ECB Trading

EUR/USD Levels are Well-Defined for post-ECB Trading

Jamie Saettele, CMT, Sr. Technical Strategist

Daily

eliottWaves_eur-usd_body_eurusd.png, EUR/USD Levels are Well-Defined for post-ECB Trading

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

Automate trades with Mirror Trader

-The failed break above the February high could be a false breakout (bull trap). We’ve seen this before. In fact, it has happened in November 2009 and May 2011. See Friday’s report for more.

-Price is holding trendline support along with the August high. A drop Monday’s low would expose the June high at 1.3415. 1.3520/60 pushed back bulls on Wednesday but a move into 1.3650 could take place as part of a larger topping process.

Trading Strategy: The market awaits ECB. A bearish stance is not warranted with the market responding to support (trendline, Aug high, Oct low) and the USDCHF divergence in place. Longs here risk getting picked off under Monday’s low. There is no need to force something that isn’t there. As always with news, pay attention to price levels (below).

LEVELS: 1.3415 1.34401.3480 | 1.3566 1.3600 1.3650

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

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