The next few days look to be important for the currency market and in particular for EUR/USD. Several Fibonacci and Gann based methodologies indicate this week part of next week should be significant for the exchange rate. Such a convergence of different cycles is rare and we are now looking for some sort of change in trend to materialize during this timeframe.
While there is a chance that a top has already been seen, our very short-term focused cycles suggest some remaining strength could be seen over the next few days before a peak materializes. Important resistance is seen at the 1x1 Gann Angle line drawn from the year-to-date high in the 1.3115 area ahead of the pivotal 4th square root progression from this year’s low at 1.3200. If a top is going to indeed materialize in the pair over the next few days then we would expect it to do so in from within this resistance zone. We like selling the Euro over the next few days near 1.3115 with a 1-day closing stop over 1.3200.
EUR/USD Daily Chart: April 25, 2013
Charts Created using Marketscope – Prepared by Kristian Kerr
Event Risk Over Coming Sessions:
Source: DailyFX Calendar
LEVELS TO WATCH
Resistance: 1.3115 (Gann level), 1.3200 (Gann level)
Support: 1.2970 (50% retracement of April advance), 1.2920 (38% retracement of April advance)
STRATEGY – Sell EUR/USD
Stop: Close above 1.3200
Target 1: 1.2900
Target 2: 1.2860
--- Written by Kristian Kerr, Senior Currency Strategist for DailyFX.com
To contact Kristian, e-mail firstname.lastname@example.org. Follow me on Twitter at@KKerrFX.
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