EUR/USD Analysis

Traders-Live

Active Trader
Jul 22, 2010
33
0
37
South Africa
www.traders-live.com
EUR/USD

Weekly Trend direction: Bullish

Weekly trend reversal level: 1.2732

Key G7 support levels: 1.2780/2800, 1.2720, 1.2630

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

Summary: Buy dips to support levels listed above after a clear G7 entry signal, allowing for a retracement as far as 1.2530. First target 1.3000 and then 1.3120. Perhaps try small counter-trend short trades between 1.2980 and 1.3050 if there is a clear G7 entry signal.


26July2010.jpg