Yesterday, on the daily Forex chart, we can see that the Euro ended with a candlestick with a long tail, showing that there would strong resistance line above. Actually after the euro met resistance at the line 1.2686, it retraced slightly. However afterwards it soon moved back up again and broke out the resistance with a long white body. Although it then turned afterwards, it did not break out the line 1.2697. Where the euro is going today on 18th Jan. 2012?
Technical Forex Analysis
On the 4-hour Forex daily chart, yesterday the euro trended sideways just below the line 1.2686 and after that it continued going upwards, breaking resistance lines again and again until it met resistance line at 1.2806. The euro dropped directly to the line 1.2710 and then rebounded strongly. For now the euro is still trending sideways.
Fundamental Forex Analysis
The euro is trading in a 1.2741-87 range so far, gaining ground for the third session in a row.
Stronger-than-expected GDP Chinese figures boosted sentiment on Monday, pushing riskier assets prices to higher levels. The upside was propped by positive German data out of the ZEW index, successful EFSF bond auction and a jump in the Empire State MI in the US.
The PSI talks are to resume today and would be one of the risk-events driving the markets in the upcoming weeks.
The cross is up 0.09% at 1.2757 as of writing, with resistance at 1.2810 (hourly high Jan.17) ahead of 1.2879 (high Jan.13) then 1.2898 (low Jan.4) and 1.2946 (high Jan.5).
On the downside, a breach of 1.2711 (hourly low Jan.17) would expose 1.2624 (low Jan.13) then 1.2592 (Lower Bollinger) and 1.2588 (monthly low Aug.14).
Trading Suggestion
Downside risk still remains, the support line I analyze is 1.2686 and the resistance line is 1.2777.
I suggest that Forex traders should observe the 30-minute Forex chart for every tiny movement. Suggestion 1: if the euro reaches the line 1.2765, then Forex traders can consider going short. Suggestion 2: if the euro reaches as high as 1.2777. Go short.
Suggestion 3: if the euro drops and breaks out the line 1.2686, Forex traders can consider going long; while they had better not take any action when the euro breaks out the same line for the second time.
No comments:
Post a Comment