EURUSD 29 May 2012

Hello and good morning friends

Lets take a look on EURUSD from weekly to H4 on presented charts.

Weekly: we have well defined downtrend channel from 1.4940 to 1.2620, dynamic channel resistance currently located around 1.3000. Also decline from 1.3486 to 1.2495 is near 61.8% projection of 1.4240 to 1.2620 decline. So 1.2460/2500 is a potential level for consolidation phase between 1.2500 and 1.3000.

Daily: Decline from 1.3285 to 1.2495 is 161.8% projection of 1.3485-1.3000 move, again 1.2500 level represent point of consolidation phase too. This is in conjugation with current daily oversold condition. Consolidation could be below 1.2800 resistance.

H4: In H4 we are in downtrend channel drawn from 1.3285 as yet, resistance today is located around 1.2630/50 area, multiple attempt to touching this resistance was failed by 1.2620 resistance. Another recovery today to this level is expected again. Hence putting together 1.2480/2500 is temporary base for Euro at least for coming days (even 2-3 weeks), so bullish move is expected to play rule with 1.2640 and then 1.2700, 1.2800 as next resistances.

Thank you

Reza Ajorloei

3 members like this

Comment by Reza Ajorloei on May 29, 2012 at 10:44am: Sumeet

buying euro is not suggested but if you like enter long below 1.2550 and try to exit with 30-40 pips profit taking, stops according to H4 view should be adjusted below 1.2480.

Comment by Reza Ajorloei on May 29, 2012 at 11:38am: Sumeet

Euro buy is not suggested as price is below 1.2700 but if you are in long trade try to exit with 30-40 pips profit. Entering short above 1.2600/10 is recommended trade yet.

Comment by Karunesh on May 29, 2012 at 4:00pm: Reza..Hi My order got stopped out for 100 pip loss..Now has Euro has moved down to 1.247..What do you suggest..Should I Place a sell order or should I wait for better position to sell..Is this a good place to buy euro..

Comment by Reza Ajorloei on May 29, 2012 at 6:19pm: Karunesh

Buying euro is not good idea at all also selling below 1.2600 is not suggested it's better to sit back and look for rebound around 1.2550 to enter short trade.

Comment by Karunesh on May 30, 2012 at 3:00am: Hi..Gud morn'g.. Euro retraced to 1.25 and then fell back to 1.246 levels..Do you see more leg downwards..or will it bounce to 1.2550 level today.

Comment by Reza Ajorloei on May 30, 2012 at 4:22am: Hello Karunesh

My expectation is bounce to 1.2530/50 for euro where again sellers appear to play the rule but keep in mind overall moves in euro is dictated by euro area bad news, this could prevent strong pullback, in other side markets now is sensitive to every good/bad news so be careful in every trade.

Comment by Karunesh on May 30, 2012 at 3:21pm: Reza ..Euro broke 1.24 support..is it heading towards 1.23-1.22 range..Or can we expect a pullback today around 1.25 range

Comment by Karunesh on May 31, 2012 at 3:11am: Hello Reza..Gud Morn'g ..Whats your thoughts on Euro today..Is it good to place a trade at this level or should we wait for a retrace to 1.25 level.

Comment by Reza Ajorloei on May 31, 2012 at 4:54am: Hello Karunesh, Good morning,

Honestly I don't see large bounce in market, I think 1.2430/50 will be the area that attract short players again but overall I see 1.2330/1.2430 range move for today. Karunesh don't forget only short trades are wise now.

Comment by Karunesh on May 31, 2012 at 5:21am: But won't the US Gdp report have an impact on Euro today.

EURUSD 29 May 2012

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