Showing accumulation as traders anticipate the ECB to provide support and buy sov bonds. If Euro breaks down more, it will be very ugly as the longs since mid Oct liquidate. Long to 1.262
Accumulation. Near term swing low is within sight. $DX_F DXY US Dollar is encountering supply from $88 - 92 at the same time. $J6_F $USDJPY Japanese Yen is near support. All the major currencies are displaying a near term change in trend. More confirmation needed. Seeing early signs.
Weekly chart here
The daily chart shows a double bottom, with a huge divergence on momentum indicators.
Considering the way the weekly charts moves, I would say a correction to the larger downtrend is highly probably. However, I believe that there is more downside coming in a few weeks. I expect the daily double bottom to play out and offer a better shorting...
The break is clean so we are looking for a small pull back on a lower time frame to get short. We will be up early to watch European session. Stay tuned!
The Euro blew through our support watch area. LESSON: This is why we look at lower time frames for entries. If you are blindly trying to enter on support/resistance your account will get ripped. With the Euro zone weakening we will stand on the sidelines until the market firms up or we see a nice pullback.
Be patient...the Euro will give us opportunity.
Massive H&S. We are currently below the neckline in a well enstablished downtrend. The recent consolidation offers a good opportunity to enter short Euro (E6U14). Immediate terget on the median line - 1.32040. QE by BCE on the horizon?
Keep the Euro on your radar screen. It's consolidating and will most likely move soon. She's come a long way so another move down could result in a snap back rally. If she breaks to the upside first look for a re-test of the break down lows.
Time For selling EUR with DIV and Harmonic pattern seen its expected to have 1.3000 next 2 months
The underlying structural fundamentals will
continue to provide underlying dollar support
with strong support at lower levels.
The Euro was pushed lower again by reported comments from ECB member Makuch who stated that
several members were open to quantitative...
Euro is trading into a bear channel started on the 27 Dec 2013. Friday 07 Feb 2014 close is at the upper parallel line. We are in overbought territory in the short term. A trade below friday low would project the next wave down to 1.3300 support. Targeting 1.3300 during the week 17 - 21 Feb 2014.
Market in downtrend - interesting bear flag pattern formed below the 20EMA and in proximity of the down-sloping parallel line. A trade below 1.28170 would confirm the trend continuation. Preliminary target set at 1.25300.
