themarketzone
Long

Testing 1.11 - Approaching to interesting buy zones

FX:EURUSD   Euro Fx/U.S. Dollar
$EURUSD is losing power towards Draghi's speech and Euro             Zone PMI numbers.
On my Weekly Markets Analysis I mentioned that last week's False Break to 1.14 means that this pair will reach 1.12 and test its 200 days MA.
Well, EURUSD             did more than that and reached near 1.11, below the 200 days MA and now testing the 50 days MA that looks like barely manage to hold it.

As long as $EURUSD is inside the Triangle pattern , I continue to look for the bullish opportunities, although closing below the 200 days MA is a warning signal.

There are two zones that may become an interesting buying zones:
1. If $EURUSD will climb back up above 1.12, creating a false break to the 200 SMA line.
2. If $EURUSD will decline towards 1.1 and complete a bullish Gartley pattern right on the trend line of the Triangle pattern .

The second option, although it involves the daily uptrend line and harmonic pattern , still has to confirm it's longer term bullish potential by climbing above the 200 SMA line so until it'll do so, I'd focus on 1.12 as initial target zone for the 1.1 long entry.

The first scenario means that this early week's declines may have been another squeeze before a major bullish move that will try to break 1.14 on its way to complete the bearish Crab near 1.18.
Stop loss for this setup should be below 1.11.

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