Tuesday December 15, 2009 - 19:31:01 GMT
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FX Times: Daily Technical Update EUR/USD Monitoring for Correction
10:32 AM EST
December 15th, 2009
EUR/USD in Minor correction
- 4H and 1H: Instead of a Gartley retracement
pattern, the market was in a triangle congestion pattern in the Asian
session, but nonetheless broken below and has reached our 1.4520
projection â€“ though this was a swing projection for the Gartley; the
projection of the triangle is further lower to about 1.4500. (Refer to Daily Technical Update 12.14.2009 EUR/USD and Daily Video Technical Update 12.14.2009).
- The decline came in the European session, after volatility shrank
in a symmetrical triangle. There may be further decline in the US
session towards 1.4500. Although the short-term bearish outlook has
reached a swing projection area, the pair may still decline in the
intermediate term. As the market is in a support area, short positions
may want to consider fast exit methods such as the parabolic. Even the
candlestick action as I speak indicates short-term bullish attempt.
- In the 4H time-frame we see that the market is testing a channel
support. The stochastic reading in both 4H and 1H time-frames suggest
short-term correction is due. A hold of the short-term powerline as
resistance at 1.4590 would be a significant indication of bearish
strength. The stochastic on the Daily (below) is also oversold, and
suggests even a longer than just a short-term correction.
- Reconsideration of further decline to should come from a
re-establishment of a significant top below the previous 1.5100 peak. A
possible top would be the 1.4800-1.4900 area, coincident to re-test of
50-Day MA, and 50-61.8% retracement.
- This projection in the below Daily time-frame should not be
mistaken as a current projection, but as a possible scenario that would
deserve major reconsideration of bearish outlook.
Commodity Trading Advisor
Information and opinions contained in this report are for
educational purposes only and do not constitute an investment advice.
While the information contained herein was obtained from sources
believed to be reliable, author does not guarantee its accuracy or
completeness. CMS will not accept liability for any loss of profit or
damage which may arise directly, indirectly or consequently from use of
or reliance on the trading set-ups or any accompanying chart analyses.
Foreign currency trading is not conducted on an exchange. CMS is
acting as a counterparty to its clientsâ€™ transactions and as a result,
CMSâ€™ interests may be in conflict with its clients. Since CMS acts as
the buyer or seller in the transaction one should carefully evaluate
any trade recommendation provided by CMS or any of its solicitors.
Foreign currency trading involves a substantial risk of loss and may
not be suitable for all investors.
All screenshots are made from VT Trader 2.0 and are of actual market data at the time of the screenshot.
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