EUR/USD 20/09/2012 - 4h and 60min Chart Analysis EUR/USD 60min Chart COMMENTS: The chart you observe is a blowup of the 60min chart I have posting since many days now. This chart is zeroing on the last few 60min trading as of the beginning of trading during last Sunday. As you can observe the parity moved within the d1-d2 channel and continues doing it. This right moment the 200SMA is set at 1,29706usd a level indicating the very next supporting level. Although the 60min chart is of short time frame, the 200SMA is always a level to consider. In addition to the 200SMA you must consider the 3.23 Fib grade-level that will enhance the supportive action of this area in general. So, a reaction must be expected. In case the parity “slips” through this level and the red channel d1-d2 surrenders there is a considerable fall to follow up to the 2.618 Fib grade-level. SUGGESTIONS: The parity is compressed between the two SMAs. By the books, the 200SMA is stronger therefore: Please wait until the parity reaches around the 1,29446usd level to open positions on both directions. Keeping this level as trading pivot, you should set the relative stop loss levels for the long and short positions, respectively. The short positions already running must reduce exposure as the parity approaches the 1,29466 level. Good luck !! EUR/USD – 4 HOURS CHART COMMENTS: The same supporting level described in the 60min chart is presented here too by the brown horizontal line indicating a strong level for which we discussed in previous days. By the manuals: “supports and resistances change identity into the exact opposite, once “broken” the first time”. So, on the way up the brown horizontal line was a resistance while now, on the way down, it is “transformed” in support. Technically, the described level includes too many supporting elements thus it would sound logical to forecast, at least, a delay in the evolution of the eventual further fall of the parity. Otherwise, the positive reaction of the up to now correction will “push” the parity to its next upward target of the4.25 Fib grade-level. SUGGESTIONS: In combination with the suggestions given with the 60min chart, you can appreciate a larger picture view in order to sustain for longer time your successful positions.