EUR/USD – KEY SUPPORT NOW SITS AT 1.3177
Following Sunday’s (24.08.14) big gap down from 1.3240 to 1.3200 most analyses were expecting a GAP FILL bounce.
So far it has not happened and the danger is that with the currency pair consolidating around 1.3200 it looks like we could see the next leg lower.
If Sunday’s / Yesterday’s support of 1.3177 givers way and we confirm a move lower towards 1.3100, all eyes and comments will be focusing on 1.3000.
There just aren’t any buyers for the EUR/USD at 1.3200 so I cannot at this stage even see a GAP FILL move higher. This must people the Eurozone periphery and Mario Draghi.
There is a very aggressive counter-trend trade possible if you have the stomach for it. 1.3181 is a 261.8% Fibonacci extension support of the move from the 1.3700 highs. A long trade with very tight stops below is an aggressive trade…this is too aggressive for my style but it an option for aggressive traders. RISK/REWARD say 25/50 pips 2:1…but you need to be a hardened trader.
The question that I am asking myself is the EUR/USD being held at 1.3200, is this a result of the French Prime Minister resignation or the after effects of JACKSON HOLE. Are the markets finally recognizing a change in monetary policies on both sides of the Atlantic?
Scott Pickering
The Pip Accumulator
Following Sunday’s (24.08.14) big gap down from 1.3240 to 1.3200 most analyses were expecting a GAP FILL bounce.
So far it has not happened and the danger is that with the currency pair consolidating around 1.3200 it looks like we could see the next leg lower.
If Sunday’s / Yesterday’s support of 1.3177 givers way and we confirm a move lower towards 1.3100, all eyes and comments will be focusing on 1.3000.
There just aren’t any buyers for the EUR/USD at 1.3200 so I cannot at this stage even see a GAP FILL move higher. This must people the Eurozone periphery and Mario Draghi.
There is a very aggressive counter-trend trade possible if you have the stomach for it. 1.3181 is a 261.8% Fibonacci extension support of the move from the 1.3700 highs. A long trade with very tight stops below is an aggressive trade…this is too aggressive for my style but it an option for aggressive traders. RISK/REWARD say 25/50 pips 2:1…but you need to be a hardened trader.
The question that I am asking myself is the EUR/USD being held at 1.3200, is this a result of the French Prime Minister resignation or the after effects of JACKSON HOLE. Are the markets finally recognizing a change in monetary policies on both sides of the Atlantic?
Scott Pickering
The Pip Accumulator
