EUR/USD Eases into 1.1150; Near Term Momentum Slows
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
-“EURUSD has taken out the 2005 low at 1.1640 and now trades at its lowest since November 2003. Price is also below the line that extends off of the June and October lows, which exhibits extremely negative slope. The November 2003 low is at 1.1377 and the 61.8% retracement of the 2000-2008 rally is at 1.1211. The crowded nature of the trade will fuel a countertrend move, which will probably be more violent than most imagine possible. Keep the mentioned levels in mind as ones that could trigger the move.”
-“1.1165/85 is support and 1.1250 (thereabouts) is estimated resistance.” EURUSD has remained within the estimated range since Thursday with a low of 1.1154 and high of 1.1244. Bigger picture, the parallel that extends from the 1/21 high determines direction.