Do not underestimate the power of price patterns, support/resistance, and Fibonacci. What others may consider old and useless, a quick look over the EURUSD price action would contradict them. From November to present time we can see that the wedges worked beautiful, before the end of 2012 the rectangle was the king, and afterwards the triangle took its place. The support and resistance zone worked fantastic and we can see that 1.2875, 1.3, 1.3150 and 1.34 are the stars of the show. This zones combined with 50% retrace (the big love of euro dollar, from my point of view) but also the Fibo levels 61.8 and 38.2 worked together like a Swiss watch. As a conclusion we might expect a consolidation between 1.34 and 1.3260. If the rise will continue over 1.34 than 1.3450 will be the next target. Good news from USA today (Building Permits, Unemployment claims and Philly Fed) might trigger some appetite for risk and sustain the euro appreciation.
Comments
dedenfd
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Dear Razvan, could you update this chart ?, I like to learn more , I adopted this method and It works like charm :-)
dedenfd
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Dear Razvan, this is my chart, I still have problem spotting the pattern..
another beautiful chart, never fail to maze me , thank you Razvan for your helpful chart
Razvan
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You are welcome. Thank you for your nice comment dedenfd. :)
Razvan
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Well, it has consolidate and now is heading for 1.3450, good fella this EURUSD - IFO over estimates 104.2, pushing it to the target
Razvan
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let's see, range or double top? what do you think, i believe that UoM Consumer index might tell us more today...
QuantitativeExhaustion
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With lower gasoline prices. Consumer confidence will be positive. However, I expect gasoline to move much higher and very soon.
Razvan
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This will conduct to a divergence with the yesterday Manufacturing Index. Now a better index would help the dollar and we could see a double top formation (plausible), or we will have a risk appetite and the range will continue. The economic data that came today from EU was not that good.
QuantitativeExhaustion
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Possible range.. I agree. Shorts are taking note of the similar patterns of the months leading to 2011 debt ceiling impasse and today's 2013 debt ceiling impasse. We may peak just days before the hard deadline date of the the Treasury debt ceiling solutions are exhausted
Razvan
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Spain's industrial orders -4% y/y, eurusd rejected from 1.3398, keeping it in the 1.3260 - 1.34 range