Forex Blog - Currency Trading Online

Recent Blog Entries

Subscribe in a reader

Blog Network:

Name:
Forex Blog

Topics:
forex, forex trading, forex software

Join my network

Blog Networks

EURUSD Daily Forex Analysis: A test of the 1.3575/85 Area Would Be Beneficial

Blog & Emails

UPDATE: Its been a big day for the currency markets. I will be looking at the following areas to trade in the next few days:

EURUSD to 1.3600
GBPJPY to 141.30
GBPCHF to 1.6800
EURJPY to 123.88
USDCHF to 1.0770

I'll be looking for specific things to happen to send me into those trades, but over the next few days, I think the majority will hit. or come within 10- 15 points of hitting.

UPDATE: 1.3500/05 reached, but do not expect much further movement down today. The pairs S3 is located at 1.3505 and is closed below less than 3% of the time. Opening shorts here may hurt in the short term. However, retail long positions are building as speculators bet that the pair is too oversold. I like to go against retail traders, in the long run they are almost always wrong. Look now for 1.3550 pull backs and if you are inclined to take short positions this may be a good area.

The pair could use a good serious test of the support seen yesterday, turning it into Resistance, to reinforce the down side bias. I have been calling for a break of the 1.3650 area if the top side is to relieve pressure from the bottom. There was a break of that point Overnight but it was quickly reversed and within a matter of 2 hours the pair had given up it's test of the 1.3700area and had fallen back to 1.3600. A Daily Low was then printed in the 1.3535 zone by 11: AM EST. Though price is looking very heavy at this point, a test back to the 1.3575/85zone to strengthen its resolve for the down side.

I also mentioned the other day that the pair may spend several days in sideways action. I like the move from 1.3700 overnight as I am short the EURUSD and have been since 1.4200 now. I am still of the belief that1.3200 is going to print in the next few weeks since the 1.3500 broke last week. I added a small position to my other short position this morning on the break below 1.3600. The daily S3 is at 1.3505 so I don't expect price to close below there today. I would like to see a test of it though.

We now have a defined Range of 1.3450/3700 that may play out over the next few days. Though I doubt that 1.3700 gets tested again. Credit default swaps are weighing on the Euro Zone and too much speculation about other PIIGS debt has kept the currency on the defensive. Tonight I expect a break of 1.3450 to as low as 1.3200 in the coming week. I'll be a bit defensive because of the short month though. Try not to get over extended on any moves lower, choppy action may dominate trade for a few days.