Update for: 2012-07-16 - 2012-07-22

Posted on: Sunday, 15 July 2012 16:00


EURUSD: 1.2248

 Short-Term Trend:  downtrend


As expected EUR/USD continued lower and almost reached the 1.2145 Fibonacci level (the low recorded last week was 1.2163). Now, despite the Friday's bounce, the daily chart remains very negative and I expect further weakness. We may see some choppy sideways action first (most likely between 1.2145 and 1.2345) because the market has become quite oversold.
Only a rise abv 1.2430/40 will negate the immediate bearish outlook and will risk larger recovery twd 1.2670 before the downtrend from the May 2011 top resumes....

Strategy: Holding short from 1.2600 is favored. Stop=1.2450.

Next Update: Sun, 07/22/2012.

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