Tuesday January 26, 2010 - 15:49:58 GMT
Share This Story
FXTimes - www.fxtimes.com
FXTimes: Daily Technical Update EUR/USD Bearish Scenario Triggered @ 1.4120
Daily Technical Update
January 26, 2010 (EUR/USD) Bearish Scenario Triggered @ 1.4120
- 1H: The set up from last session materialized into
a decline in the Asian session, see above chart with original risk
assessment. The anticipation was on point as the momentum was showing
bearish divergence and the rally was very laborious. (Refer to Daily Technical Update 1.25.2010 EUR/USD)
- The decline that started after the Asian session got on way broke
the short-term trendline and came in 2 strong bearish candles that
closed at 1.4120. The anticipated trigger at 1.4110 yielded a 1.6:1
reward to risk ratio using the 3 ATR method and with a target at 1.38.
- Now, the process is monitoring the decline, which so far looks
healthy, although some support can be expected at the 1.4030 area
(previous bottom on 1/21/2010). Also the stochastic is oversold, though
it is showing continuation of bearish strength.
- 4H: The stochastic is oversold, but as not turning
up. It can easily stay in oversold ranges if price action display
strength like it did in the Asian session. The European session was not
very bullish, but the start of the US session is pointing to
- The target is 1.38, but expect some pause around the 1.40
area. The ability for bullish momentum to reach overbought in the
previous session suggests the market may be in somewhat of a ranging
mode before bearish forces completely take over.
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.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."