EURUSD - Weekly Strategy (07-11 Jan 2013)

Pivot: 1.3189

Recommendation: SHORT positions below 1.3112 with 1.3000 & 1.2900 as next targets.
Alternative scenario: The upside breakout of 1.3189 will call for a rebound towards 1.3308.
Comment:.Intraday bias is on the downside and current fall from 1.3308 could extend to 1.2900 levels and below, but still viewing this fall from 1.3308 as correction, so I expect strong support from 1.2875/1.2735 levels to contain downside and bring rebound, above 13189 will flip bias back to the upside for 1.3308 , above 1.3308 will resume the bullish move towards 1.3500 levels..

Resistance: 1.3125,1.3189,1.3295, 1.3380, 1.3550

Support: 1.3021, 1.2972,1.2875,1.2735,1.2660

Best Regards

Haitham

Tags: EUR/USD, EURUSD

6 members like this

Comment by AHMED SAMIR on January 6, 2013 at 12:17am: basha , thanks for your analysis , think it will reach 1.33 again in the next week , hope it reach 1.29 first or i will be in deep shit :D

Comment by Haitham653 on January 6, 2013 at 6:06am: Hi AHMED...

Still too early to talk about 1.3300 levels, a daily close above 1.3189 may surprise 1.3308 with a breach and push the pair to 1.3500/600 levels before diving to 1.2000 levels, check out the weekly chart, we have bearish divergence , sooner or later it will fall, from here or from 1.3600/1.4000 levels..

If we shift down to the daily chart , we have bearish momentum breakout at 1.3021, so we need a daily close below this level to push the pair further lower to 1.2875/1.29735 levels, a daily close below 1.2735 will bring a free fall to 1.2500/400 levels, so far, the pullback we witnessed last Friday is normal after strong bearish move, now we need to watch the pair around 1.3100 or 1.3189, since it's likely to fall below 1.3100 or 1.3189 levels....

I can summarize everything with 2 points:

1- According to daily chart, between 1.3189/1.3021;Intraday bias is neutral with bearish tone , below 1.3021 is bearish while above 1.3189 is neutral with bullish tone and above 1.3308 is strongly bullish!!

2- According to weekly chart, a weekly close below 1.3000 levels will open the way to 1.2500 levels - Sept 2012 low - Below 1.2500 will suggest a free fall to 1.1600 levels,on the upside, a weekly close above 1.3308 will extend the bullish move to 1.3600/1.4200 levels before diving to 1.2500/1.1600 levels.

Comment by A.KHAN on January 6, 2013 at 8:35am: Hey Haitham653 are you on twitter

Comment by A.KHAN on January 6, 2013 at 8:37am: There could be an opening of Green profit 1.3100 or 1.3121

is it or not

Comment by Honey Bhai on January 6, 2013 at 5:08pm: nice review..... but still agreed it can go to 1.315 region and in weekly it might come down to 1.28..... BEARISH DIVERGENCE is there and i hope if follows ur predicted scenario...... but nice work and keep posting............

regards

Comment by Haitham653 on January 7, 2013 at 5:17am: According to 1 hour chart, EURUSD is under pressure as long as trades below 1.3089, a break below 1.3000 will open the way to 1.2900 levels ,on the upside, break of 1.3089 will extend the bullish move to 1.3170 before possible topping around 1.3170 levels..

Comment by Elric on January 7, 2013 at 5:24am: nice analysis haitham. so, do you agree if entry position for long @ 1.3020?

Comment by Haitham653 on January 7, 2013 at 5:36am: Hi Elric

That might be be risky a bit, since below 1.3000 might bring strong bearish move...

Comment by Haitham653 on January 7, 2013 at 5:43am: If the pair extends above 1.3089, I recommend waiting for a rejection from 1.3189 on daily or 4 hour at least , If seen, next target will be around 1.2900 levels..

If 1.3189 fails , I'll go long with target at 1.3380 and 1.3550 with stop below 1.3089