EUR-USD

EUR-USD - 1.3177

Trend : Near term down

Tenkan-Sen level :1.3118 Kijun-Sen level :1.3115 Ichimoku cloud top :1.3079 Ichimoku cloud bottom :1.3040

New strategy : Stand aside

Position: - None Target: - None Stop:- None

Euro's rally after breaking resistance at 1.3120 Thursday's high adds credence to my POV that a temporary low has been formed at 1.3005, and retracement of recent decline to previous resistance at 1.3192 would be seen, but a break above there is needed to retain Bullishness and bring a stronger rebound towards 1.3245-50, 50% Fibonacci retracement of 1.3486-1.3005, later which is likely to limit the upside.

On the Downside: a pull back to 1.3135-40 is likely, to 1.3115-20, the current level of the Kijun-Sen and previous resistance, should limit any downside and bring another rise later.

A breach of the Ichimoku cloud top, now at 1.3079, will suggest that a Top is formed instead and risk test of intra-day support at 1.3049, a clear break there confirms, and bring weakness to the lower Kumo, now at 1.3040, first.

I would not chase this rise now, and believe it prudent to stand aside in here.

width=600

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.