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EURUSD Daily Forex Analysis: Short Target Hit After Test of Stop
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I mentioned in yesterdays post that I expected price to rise towards the 1.3750 area and that a short trade with a stop above 1.3800 would be prudent. That exact trade played out Overnight. My thinking was that the speculation over the Greek bailout would be disappointing in the end. The EU summit happened and the most that happened was a stern warning for Greece to get their ducks in a row, and maybe there might be some help on the way. To say that this fell short of the hoped for outcome is obvious. There may be more news on the horizon but right now it's seen as bad Euro mojo.

From here, begin looking for a Bounce at the 1.3600 level. It should be rather muted though. The key point is 1.3585 yearly low set last week. If this area holds in the coming days, then a test of 1.3875 may happen before more weakness is seen. There are plenty of calls for EURUSD to go to 1.2500/3000 this year. That is a rather long term outlook though and I don't like looking that far out. I prefer to look for the shorter term trades and play within the daily ATR(14) Range. Expect a rise back to the 1.3650 area in the coming hours.

I will look to fade gains above there and maybe a break of 1.3585, but not until the hourly RSI comes off of oversold levels and back into the 35-40 range.

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