spotfxtrader

The market has failed after a temporary penetration of the 1.3693 level, and a rejection of the ‘mean channel’. It is still possible that a low has formed, but if the market is forming a base, then we would expect a higher bottom above the week’s 1.3446 low. Potential supports for such a higher bottom would be at 1.3516.

The impulsiveness of the decline has carried the market below our 1.3516 objective and, as the daily chart shows, this move has penetrated the channel support drawn up off the September low. This is now a fairly critical juncture for the market; declines remain impulsive in nature and rallies continue to resemble corrective action, suggesting a move to the slower channel support which coincides with the band of consolidation commencing with the 1.3163 level.  1.3516 is now capping the market and a recovery of the 1.3693 area would really be required to signal an end to this decline.

The impulsiveness of the decline appears to signal that the market is now in retreat in search of support back towards the channel drawn up off the early September low. A break of 1.3693 would suggest 1.3516.

Market has probed through the 1.4223 level and dropped back fairly impulsively into the range. Further gains can’t yet be ruled out however; the market has at least so far held above the minor level at 1.3870 and it would really take a conclusive break of the old swing low at 1.3693 to indicate a potential completion of the move up off the August low, leaviong a significant high in place.

Above, 1.4400 and 1.4577 remain valid possibilities.

Upchannel regained, uptrend in place, next objective 1.4223.

EURUSD in clear uptrend. 1.4223 targeted.

The market is trailing up the underside of the penetrated channel and looks set to test 1.4047 or possibly the old swing low from last december at 1.4223

EURUSD tracking the underside of the upchannel

EURUSD is near resistance at 1.3907 which marks the 61.8% retracement from the highs in November last year.

EUR maintains steep upmove vs USD