Hi All,
Looks the Euro about to test a key fib support....if it can't hold 1.2850 then we should see a return to the multi-year lows......Happy trading!!!
Euro/Dollar – The market continues to extend declines off of 1.4720 (18Dec high) making a series of lower tops and lower lows, to just under 1.2900 thus far today. Today’s break below 1.3025 (15Jan low) confirms a fresh lower top now in place by 1.3390 (19Jan high) and opens a test of next key support by 1.2850 which represents the 78.6% fib retracement off of the major 1.2330-1.4720 move. While a full retracement back to and below 1.2330 (28Oct Trend Low) is likely, the 78.6% fib retracement is often the final level to be tested before officially calling for a 100% retracement. As such, look for the latter level to initially buoy additional setbacks with the possibility for a short-term bounce from there. We will use this bounce as an opportunity to sell for a retest of the critical trend lows. Recommendation: SELL @ 1.3100 FOR A 1.2335 OBJECTIVE, STOP @1.3410.
Quote:
Originally Posted by brad_1199
Now that the EURJPY Monthly chart has completely negated the Bullish engulfing signal left on the chart last month my bias has changed towards more downside momentum and a target below 88.87, which lines up much better with what I'm seeing in all the other YEN crosses now.. That bullish engulfing candle signal last month was a tricky one especially since it occoured at 61.8 support... In the near term I am looking for a bottom to form around current levels and one more rally back up to the 1.2500 - 1.300 range to complete wave "E" of a larger "B" wave triangle.. It looks like this is only going to be a correction and we should still be expecting new multi-year lows... Apparently the YEN is about to smoke the entire world !! I see a lot of currencies will be highly under valued in comparison to the YEN very soon... I'm glad this pair has cleared up a bit.. That Bullish Engulfing candle last month was tricky, but I'm pretty sure i know what's going on here now... Wave "E" will be confirmed underway shortly...
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