EURUSD - Hesitation With Unclear Direction ?!
The EURUSD recovered strongly yesterday around 1.2927 as previously suggested in the weekly report, however, with yesterday closing, the pair found new dynamic support at 1.2920, so as long as 1.2920 holds on a daily closing basis ,more bullish development is suggested the next few coming days, and the pair may surprise/overcome 1.3171 , but to surpass 1.3171 the pair needs first to overcome 1.3015,1.3080 then 1.3139 levels , anyway the resistance level 1.3080/1.3139 is strongly protected by the dark cloud bearish reversal candle , so only a daily closing above this level will pave the way for a run towards 1.3282 levels !
For the downside, If 1.2920 fails, expect EURUSD to weaken further towards 1.2840/740 levels , intraday traders can watch now 1.3015/12 levels anticipating rejection below this level, If 1.3015 fails , the pair would respect 1.3080 and make at least small correction 40 or 50 pips before the next move !!
Scalpers can short around 1.3015/12 and 1.3080...the last word , more sideways moves are suggested as long as the pair trades between 1.2920/1.3130 levels...
Best Regards
Haitham
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Comment by Haitham653 on October 25, 2012 at 8:13am -
Hi Grigore...
in the medium term I see head and shoulders under development , the head around 1.3130 , the shoulders around 1.3070, the head and the left shoulder are completed , so far the right shoulder is under development , once this pattern is completed expect the pair to fall towards 1.2500 levels even lower !!!
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Comment by Haitham653 on October 25, 2012 at 5:13pm
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As shown on the 4 hour chart below, the pair was rejected from 1.3012 with bearish candle, so far the pair hovering around 1.2950,4 hour closing below this level would weaken 1.2920. A breach will bring strong bearish move towards 1.2840 levels, however EURUSD needs to overcome 1.3070 with a 4 hour closing at least to weaken 1.3139 levels...
On daily, looks like bulls will surrender soon, anyway , a daily closing below 1.2920 will bring deeper bearish move towards 1.2755 levels, a pullback is suggested at this level before heading towards 1.2500/400 levels !!!
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Comment by Haitham653 on October 25, 2012 at 5:44pm
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According to 1 hour chart below , inverted head and shoulders pattern -bullish reversal - under development , if the pair manage the overcome the sloping line comes through 1.3139/1.3080,it may rise further higher towards 1.3139/1.3171 levels .....
however, this scenario is suggested as long as the pair trades above 1.2920 , see the chart below:
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Comment by devrim oz on October 27, 2012 at 6:05am -
Hello and thank you for explanations , can we draw a long term trendline from 2000 and will pass over 1.30 right now , so can we say in recent weeks when euro pass under this trend line and break it and now try to re pass into the trendline on monthly view just holds on 200 ma ?
Comment
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