Wednesday March 3, 2010 - 20:52:44 GMT
Share This Story
FXTimes - www.fxtimes.com
FXTimes: Daily Technical Update EUR/USD Stalking Retracement
EUR/USD Stalking Retracement
- 4H: The bullish scenario discussed in yesterdayâ€™s video update is materializing. (Refer to Daily Video Technical Update.)
- I noted that this rally should be treated as a retracement, and we should be looking for topping action to show weakness.
- The 1.38/1.3850 area is an important resistance. If that is broken the 1.39 area is also an important resistance.
- The key is to look for topping action, then observe the decline if
one materializes. If the decline brings the stochastic back to the
oversold area, BUT price action does not break below the 1.3450 area,
we may be looking at bullish forces taking over.
- Daily: We see that the current support of 61.8%
retracement and 123.6% extended retracement is holding up. Bottoming
action at 1.35/1.3450 is followed by todayâ€™s strong bullish candle.
- But we do see that the 1.38-1.39 area is an important powerline,
where we may see some resistance. This is also going to be coincident
with the declining trendline, and would likely test the SMA 50.
- A break above may suggest further rally towards 1.43, which would also test the SMA200.
- On the downside. If the market tops off and continues to decline
past 1.3450, the 1.3050/1.31 area is the next support (78.6%
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."