EUR/USD Analysis

[Traders-Live]

EUR/USD

Weekly Trend direction: Bullish
Weekly trend reversal level: 1.2480
Key G7 support levels: 1.2780, 1.2740, 1.2680
Counter-trend and scalping opportunities: 1.3120’ish

Strategy: Whilst above the weekly trend reversal level buy dips to support levels after an entry signal.

Today's trade suggestion:
Beaten down from the weekly trend-line as expected, but not “out” Allow for a bit more work under the trendline, and perhaps even a pull-back to 1.2300-1.2400. That having been said, we need to stay above the weekly reversal level at 1.2480 this week for the strong bullish momentum to continue, and we’ll look to buy into dips whilst that is the case. Good support levels lie at 1.2570, 1.2520 and 1.2480/2500. Watch and wait for a clear G7
entry signal before buying the euro for a rally back to 1.2700. I suspect that the euro won’t be in a rush this week,
so be patient – there will be plenty of time to pick your moment!

Update: The Euro has finally broken the shackles of the weekly downward trend line and has had a good spurt of
momentum moving higher. For today, there will be little chance to trade using the G7 system in the weekly
direction, and picking tops with such a strong uptrend is dangerous. I’m going to wait for next week to re-assess
the charts. Aggressive trades may be tempted to pick a top (not recommended) and if you MUST, perhaps wait
for a further rally to 1.3120 and wait for a CLEAR G7 counter-trend set-up.

Summary: Stay sidelined OR look for a counter-trend chance around 1.3120 after a clear G7 entry signal.

[Traders-Live]

EUR/USD

Weekly Trend direction: Bullish

Weekly trend reversal level: 1.2732

Key G7 support levels: 1.2900, 1.2850, 1.2780/2800, 1.2720

Counter-trend and scalping opportunities: 1.2980 – 1.3050

Strategy: Whilst above the weekly trend reversal level buy dips to support levels after an entry signal.

Today's trade suggestion:
Little has changed since last week, as the Euro has been in a broad sideways range for much of the last week. Support levels are listed above and we’ll continue to look to buy the Euro into dips, with an unchanged strategy. There is a word of caution: It is very possible that we’ll retrace and correct back to the weekly downward trend line, which now acts as a support. Today, this lies at roughly 1.2520, which is below the weekly reversal level. As bullish momentum has slowed somewhat and the danger of a consolidation/correction is increasing, we’ll allow for some careful trend and counter-trend trading if the opportunity arises. Watch for potential topping at 1.2980/1.3000

Update:
Very little change, as the euro popped its head up briefly above 1.3000, and then back to the range. We’ll have to wait and see if we get another rally from here. The strategy remains unchanged, apart from small adjustments to the support levels above. Probably best to focus on trading in the direction of the bullish trend
today.

Summary: Buy dips to support levels listed above after a clear G7 entry signal, allowing for a retracement as faras 1.2630. First target 1.3000 and then 1.3120.

EUR/USD Hourly chart:

[Traders-Live]

Weekly Trend direction: Bullish

Weekly trend reversal level: 1.3040

Key G7 support levels: 1.3100, 1.3040/50

Counter-trend and scalping opportunities:

Strategy: Whilst above the weekly trend reversal level buy dips to support levels after an entry signal.

Today's trade suggestion:
August chop already seems to have set in, with Friday’s NFP gains already wiped out, and nasty swings yesterday. We haven’t managed to get into any Euro trades this week so far, and just as well – bullish attempts would have been stopped out. For today, we’ll look to buy the euro into dips with just two support levels left beneath us: 1.3100 (yesterdays support low) and 1.3040/50 (the weekly reversal level and the 78.6% retracement of the last swing rally) Be careful of whipsaw, and don’t be in a rush to enter this market today. With over 300 pips in the bank already this month, I am willing to be VERY patient.

Summary: Buy dips to support levels listed above after a clear G7 entry signal. If we drop below the weekly reversal level at 1.3040. Stay out.

EUR/USD Hourly chart:

[fatima]

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