Hi my dear friends
and other followers, thanks to Zue for ID business recently set up with Li,
Sarah, Azhar, Bro Hassan and others too, congratulations! Back to my current analysis since
the Jobs report did not bring the size of move thrill seekers were hoping for,
and no key levels were broken on Friday. However, today we can see the price
attempting to break above the falling trend line from August 24th American
session high, as can be seen on the attached chart. The bulls enjoyed a moment
above this line but came back to trade below it in no time. The actual trend
line is currently running at 1.1145, and this may be used as a first
resistance, but the current daily high 1.1174 & Friday’s jobs-high 1.1187
do look like they are more important than 1.1145. Although using 1.1145 as a
first resistance has nothing wrong with it, breaking this first resistance will
not mean a lot without managing to overcome 1.1174/87.
A break above the top of this area will be a positive sign, and should give the Euro a chance to recover more of the losses seen recently. The first target for breaking this area is 1.1266, followed by 1.1295 & 1.1326. Above here we may target 1.1355 ahead of an important short term retracement at 1.1400. If this level gives way, not only the short term outlook will improve, but may be the medium term outlook as well. The first couple of targets above this level are 1.1444 & 1.1473.
On the other hand, breaking 1.1153 which was witnessed last week shifts the attention to 1.1066, which is next in line of important retracement levels. However, ahead of that, we have a minor level at 1.1105. In order to continue recovering from Thursday’s & Friday’s lows, it is preferred for the price not to break below 1.1111. A break below this level immediately puts 1.1066 in our faces. This level should get our attention as it may reverse the price. As it is always the case with key retracement levels, a bottom very close to this level may be followed by a sizable move to the upside. We need to watch the price as it approaches this level, and keep both of our eyes open as we look for signs that help us estimate if the price will continue falling or reverse from around this level.
A break below 1.1066 will seriously hurt the short & may be even the medium term outlooks, and could result in a selloff that will be expected to target, or at least approach the mega-support 1.0807. Closer targets include 1.1017, 1.0960 &1.0936 from my opinion.
No comments:
Post a Comment