EUR/USD Outlook

Most recent candlesticks pattern : N/A

Trend : Sideways

Tenkan-Sen level :1.3177 Kijun-Sen level :1.3171 Ichimoku cloud top :1.3115 Ichimoku cloud bottom :1.3111

Original strategy : Buy at 1.3120, Target: 1.3220, Stop: 1.3085

New strategy :   Stand aside

As the single currency has continued to move higher, suggesting the rebound form 1.2995 is still in progress and the crack of last week's high of 1.3213 encourages for a stronger retracement of early decline from 1.3385 towards 1.3251, prior support turned resistance, but, the near term overbought condition should limit upside to 1.3278, another prior support mark, and the 1.3300 could hold from here.

In view of this, I would not chase this move in here and prefer to buy EUR on a pullback.

A break Below the Kijun-Sen, now at 1.3171, would bring test of intra-day low of 1.3129, but, only a break of the Ichimoku cloud, now at 1.3111-15, would signal a Top is formed instead and bring weakness towards 1.3058-69 support. Stay tuned...

Paul A. Ebeling, Jnr.

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.