Main analysis

Update for: 2012-06-25 - 2012-07-01

Posted on: Sunday, 24 June 2012 22:13


EURUSD: 1.2567

Short-Term Trend: weak downtrend


EUR managed to rally abv 1.2670 but couldn't sustain its gains as the 1.2750 level turned out to be a strong resistance. Then at the end of last week EUR declined sharply and signalled that wave X was over.
Now, the hourly chart is negative as the prices are below the 21-day MA and the daily Stochastics has curled down. However, the time consumed by wave X is too small, so we cannot rule out further choppy trading in the next week or two.
Still, the current conditions do favor the downside and I also favor the short side here as long as the 1.2750 level holds as resistance.

Strategy: Shorts favored at 1.2600. Stop=1.2750.

Next Update: Sun, 07/01/2012.

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