EUR/USD

DailyFX

EUR/USD Trading Levels are 1.3450 and 1.3640 are

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eliottWaves_eur-usd_1_body_eurusd.png, EUR/USD

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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-EURUSD traded above the 127% expansion of the 1.3451-1.3104 range before drifting lower to end the day. The 2 day sequence is similar to what happened in when QE3 was announced in September 2012.

-The close 15 minutes after the Fed announcement at 1.3450 is also the August high. This level is now possible support. Watch the channel for resistance, especially 1.3640 (2/1 close).

-A handful of hours make up over 80% of the range since July 10th. Bernanke comments on July 10th (late in the day…rally carried over into early Asian trading on the 11th) and on September 18th.

Trading Strategy: 1.3450 may offer support for an extended advance into month end but I’ll need to see what the market looks like if indeed a drop to that level unfolds.

LEVELS: 1.3337 1.33851.3450 | 1.3570 1.3600 1.3638

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