EUR/USD – Day Trading Update

Posts have not been as frequent during the week for forex day trading analyses lately, but after a another day of down right belligerent volume on the stock market, I thought I would pay homage to our liquid friend the EUR/USD.

Early trading  this week saw the Euro move off the lows of the hurtful experience it had last week.

A drop below 1.2800 is a pivot point. Watch for a retest of the lows below 1.2750.  On the longer term we are seeing a correction, but within an overall uptrend.  The uptrend is thrown out the window with a move below 1.2700.

So far the upward trendline from the daily chart has held.  This means if the shorter time frames can show some strength by taking out swing highs from late last week the short and long term set-ups will align.

Rise above 1.2875 is likely to encounter resistance between 1.2915 and 1.2940.  Movement above that, sets up some potential aggressive buying as we will have a very short-term uptrend for action this week.  There is little resistance till 1.3070.

Last week saw aggressive selling and can’t be dismissed, even though the daily uptrend has remained intact.  Watch the pivotal levels, right now at 1.2800, 1.2700 and 1.2940.

Cheers,

Cory Mitchell, CMT

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