Tuesday January 19, 2010 - 15:22:25 GMT
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Daily Technical Update EUR/USD Test of Support
Daily Technical Update
January 19, 2010 (EUR/USD) Test of Support
- Daily: The EUR/USD is about to test the 1.4200
support. The daily chartâ€™s price action shows very aggressive bearish
candles after reaching 1.4600. (Refer to Daily Technical Update 1.15.2010 EUR/USD)
- In fact, with the stochastic showing heavy momentum, and not even
over sold conditions, the market is hinting this may continue to the
1.40 area in the short-intermediate term.
- 4H: The decline was anticipated, and there was a
throwback, but it did not reach the previous support at the 1.4460
area. Instead the correction rally made it to 1.4410 only before a
strong bearish candle right ahead of the US session.
- The 4H time-frame shows a possible short-term swing projection to the 1.4180 area(127.0%
retracement). This would be considered a break of the 1.42 support for
the recent consolidation, but some confirmation would be nice. This
would also complete a bullish butterfly, so thereâ€™s some bullish forces
at this level.
- See if the market can suppress a rally coming out of this possible
bullish butterfly formation. Laborious attempts and topping action
below the 1.4400 pivot indicates the market may continue further down.
The then-short term projection for this decline would be to the 1.4000
area. An intermediate projection is to the 1.37 area (61.8% retracement
area in daily).
Commodity Trading Advisor
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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.
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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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