Last week the Euro/Dollar moved within the 1.3020 - 1.3430 range. Volatility made it possible to achieve good speculative profits. The market is looking for long term direction, which in the short term will be beneficial to swing trading. Today opened with downwards bottom of 70 pips to the 1.2975 level. Traditionally, such movements are fulfilled subsequently. The rule has been met now. The overall scenario for today is with decreasing potential, with an initial targets towards 1.2950, followed by 1.2750. On the four hour chart the currency pair found resistance at levels around 1.3385 with 3 failed tests of it so far. This shows that traders' expectations are still in favor of the Dollar. Today the new U.S. president Obama's stepping in the White House is expected, which should start moving the market. Technical indicators also show uncertainty on a daily basis as MACD is around the zero line, and RSI around 50. If we consider the Fibonacci principles we may find that the price in its corrective movement had reached a level of 78.8% at 1.3020, and then attempt to move upward at that time has stopped at 61.7% at 1.3380.
Technical resistance levels: 1.3165 1.3285 1.3385
Technical support levels: 1.2950 1.2845 1.2750
Trading range: 1.3040 - 1.2980
Sell at 1.3030 SL 1.3060 TP 1.2990
Yesterday we made +29 pips profit on EUR/USD from the following signal:
5:45 GMT Buy EUR/USD at 1.3335 SL 1.3309 TP 1.3385 exited at 6:23 GMT
Total yesterday +127, as shown at www.zifx.com/performance.php