14th Dec
Weekly Trend direction: Bearish
Weekly trend reversal level: 1.4905
Key G7 resistance levels: 1.4780/4800, 1.4860, 1.4930
Counter-trend opportunities: 1.4500/1.4480
Strategy: Whilst below the weekly trend reversal level sell rallies to resistance levels after an entry signal.
Today's trade suggestion:
The euro continued to drop last week, mainly due to a late dollar rally on Friday. Some have called this an “unrelenting” dollar rally, but I could hardly agree with that – this correction is a normal part of the process and we
could well see further dollar weakness before year end. However, we’ll go with the flow for now, and look to sell euros whilst below the weekly reversal level (now at 1.4905) resistance levels lie overhead at 1.4780/1.4800 (key)
and then slightly higher at 1.4860. Watch and wait for a clear G7 reversal signal before selling, stops above the reversal candles, and target around 1.4680 and then maybe 1.4600. Counter trend longs could be tried at
1.4500/4480 after a reversal pattern.
Summary:
Sell rallies to resistance levels
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