09 Nov
Weekly Trend direction: Bearish
Weekly trend reversal level: 1.4920
Key G7 resistance levels: 1.4920
Counter-trend opportunities: 1.4970
Strategy: Whilst below the weekly trend reversal level sell rallies to resistance levels after an entry signal.
Today's trade suggestion:
We remain just bearish whilst below the weekly reversal level at 1.4920 (last week’s high). However, it might not be long before the weekly direction reverses and there are no signs of hourly topping as yet. If we do break above 1.4920, it’s likely that the euro will rally to 1.4970 (the 78.6% retracement of the entire move down from the all -time high at 1.5063. It’ll be interesting to see if we stop there and move lower again, or if the euro is intent on testing the 1.5060 level. Time shall tell! In the meantime, watch for signs of reversal at either 1.4920 or 1.4970, before trying small shorts for a move lower back to 1.4850 and eventually 1.4650.
Summary:
Sell rallies to resistance levels after a clear reversal – stops above the reversal pattern – target 1.48500 and then 1.4650.
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