Weekly Trend direction: Bullish
Weekly trend reversal level: 1.3434
Key G7 support levels: 1.3550, 1.3500, 1.3450
Counter-trend opportunities:
Strategy: Whilst above the weekly trend reversal level buy dips to support levels after an entry signal.
Today's trade suggestion:
After being stuck in the same range between 1.3500 and 1.3700 for over a month, there is little to add to the past few week’s analysis. I continue to be bullish on the euro after a series of weekly Doji candles, however, the longer
we stay like this, the more likely a false spike lower becomes. Support below is clearly demarcated at 1.3550 (yesterday’s intermediate bottom) and 1.3500, with the weekly reversal level at 1.3450. Continue to look to buy
into dips after a clear G7 entry signal, aiming for the top of the range at 1.3700’ish. Remember that ranges can often be broken falsely on the “wrong side” and euro longs should be treated with care. Keep stops tight. If we
don’t rally back to the range ceiling this week, be prepared for a sudden drop below 1.3450 – perhaps with a dramatic weekly spike low somewhere below.
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