Thursday, 22 November 2012

EURUSD stairwell to 1,32 or just another upward correction?

EURUSD despite the negative climate surrounding Eurozone and the inability of EU leaders to reach an agreement at the recent Eurogroup meeting, the pair is rising steadily from 1,2660 level. Prices have  broken out of the descending trend channel and is pushing higher towards 1,2850. Resistance is found at 1,2870 and 1,29 area. The decline from September highs near 1,32 is clearly in 3 waves. This puts the downward impulsive scenario into question. So bigger picture not so clear yet.
Taking a closer look at EURUSD we observe that the rise from 1,2660 is also overlapping and there is no clear impulsive wave action here also. How can we trade this though? Short term trend is upwards with important resistance to be tested at 1,29. This upward moving pattern could develop to an impulsive wave if news from european leaders are positive regarding the solution to the debt crisis in Eurozone. The upward moving purple trendline should be watched and prices should not break the 1,2750-1,2725 zone for the bulls to have more chances.

If you need more help understanding my charts or any help trading EURUSD, don't hesitate to contact me. 

Thank you for taking the time to read my post.

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