EUR/USD Digests Wednesday’s Reversal; Resistance Remains 1.3720/50
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
-The EURUSD formed a triangle pattern prior to FOMC. Comments before FOMC were “triangles sometimes form before a final ‘blow-off’. In this case, a triangle measurement is 1.3915, which is in line with the long term trendline.” The triangle played out although the ‘thrust’ was especially weak. Price didn’t even make a YTD high. The weak ‘thrust’ may signal a weak market going forward.
-An outside day reversal unfolded on Wednesday (price actually engulfs the prior 7 days).
-Recent support is now resistance from 1.3720 to about 1.3755.
Trading Strategy: Order to short but moving the entry to 1.3750 (in line with underside of broken trendline), stop 1.3815, target 1.3420.
LEVELS: 1.3525 1.36211.3657 | 1.3709 1.3757 1.3811