Hello everyone,,,, and happy new year to you all!!!
I hope you enjoyed 2013 , and I’ll do my best to make 2014 one of your best trading years , last year the EURUSD moved upward as expected , according to the yearly chart , there’s a room for further upside to test 1.4090/1.4500 levels before falling towards 1.2000 levels, anyway , sustained taring above 1.4500 levels will open 1.5000 levels and possible higher….note that we have minor resistance at 1.3870 levels , sustained trading above this level will open 1.4500 levels.
Finally , I’m gonna use this forecast as reference for monthly and weekly forecasts , to capture turning points and big moves in the market , so stay tuned for updates…
Before we start , I put 2 strategies for 2014 to make the forecast more effectively, wish you all good luck in 2014 !!!
Strategy 1 :
Recommendations: LONG positions around 1.3400 with 1.4000 & 1.4400 as next targets.
Alternative scenario:The downside breakout of 1.3104 will open 1.2795/1.2495 levels.
Recommendations: SHORT positions below 1.4441 with 1.3800 & 1.3500 as next targets.
Alternative scenario:The upside breakout of 1.4441 will open 1.4685/1.4940 levels.
Description: With the key support 1.3104 intact ,further upside couldn’t be ruled out and there’s no resistance but 1.4083 ahead of 1.4441 (main) . around this level , sellers may dominate the market ,so selling pair after rejection on a weekly basis is recommended , but If 1.4441 fails on a weekly expect the market to strengthen further towards 1.4685 ahead of 1.4940 levels.On the downside , support comes at 1.3400 ahead of 1.3104 (main) , buying the pair is recommended after rejection on weekly, losing 1.3104 on a weekly basis will reverse risks to the downside towards 1.2795 ahead of 1.2495 levels.
Conclusion : Overall outlook will remain bullish with risk towards 1.4083 ahead of 1.4441 and possible higher as long as 1.3104 holds on a weekly closing basis.
1-Main support comes at 1.3104 levels , If the pair holds below this level on a weekly basis , 1.3400 should limit any upside move above 1.3104 and bring resumption towards 1.2795/1.2495 levels .If the pair holds below 1.3104 then breaks above 1.3400 , sooner or later It would target 1.4000 levels and possible higher…
2- Main resistance comes at the 1.4441 levels , If the pair holds above this level , 1.4083 should contain any downside move below 1.4441 and bring rebound towards 1.4685/1.4940 levels. If the pair holds above 1.4441 then breaks below 1.4083 on a weekly basis , sooner or later it would target 1.3400 and possible lower !
Trend Direction :Upward
Support & Resistance :
1.4441 – Bullish breakout level
1.4441 – Maximum Overbought
1.4083 – Overbought
1.3400 – Oversold
1.3104 – Maximum Oversold
1.3104 – Bearish Breakout Level
1.3104 – Pivot level for 2014
EURUSD – Weekly Chart