18th January
Weekly Trend direction: Bullish
Weekly trend reversal level: 1.4320
Key G7 support levels: 1.4320/50
Counter-trend opportunities:
Strategy: Whilst above the weekly trend reversal level buy dips to support levels after an entry signal.
Today's trade suggestion:
Despite last week performing a “higher high and higher low”, the candle spike high is a concern for bullish traders. However, this also gives us an opportunity to get into a long position this morning with a tight stop and a
weekly reversal level only 10-20 pips below us at the time of writing this. We’ll know if we are wrong very quickly.
Whilst above 1.4320 I’m looking to buy the euro with a target of around 1.4420 (the 38.2% retracement of the move down from last week’s high) or perhaps even 1.4450 (see chart – previous support and the 50% Fibonacci level). We are still in a consolidation phase with the key medium term support at 1.4220 still holding after 4 weeks of first contact. This week should be a decisive one, probably with a strong break higher.
Summary:
Buy dips 1.4320/50 after a clear G7 entry signal, target 1.4420/50.
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