EUR/USD Holding Up-Outside Day on Big Level

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eliottWaves_eur-usd_body_eurusd.png, EUR/USD Holding Up-Outside Day on Big Level

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: No change: “The decline from 1.3242 is in 5 waves which suggests that the break will be lower. The momentum associated with Thursday’s decline is consistent with the beginning of something more sinister on the downside but plenty of options remain from a pattern standpoint as long as price is within the range.” Price is still contending with an internal trendline (former diagonal resistance line) and 1.2934, the 61.8% retracement AND the close of the 4/4 reversal day, but support is expected to prove ephemeral. A break would open up 1.2876 and 1.2800. Bigger picture, a head and shoulders top would be confirmed on a drop below 1.2743.

FOREX Trading Strategy: 2 days of sideways trading has succeeded Thursday’s and Friday’s decline. I’ll either sell weakness below 1.2934 (needs to be during active hours) with a 1.3035 stop or sell strength above 1.3028 with a 1.3200 stop.Breakout trading is warranted.

LEVELS: 1.2800 1.2877 1.2934 1.2994 1.30281.3083

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