EUR/USD Forecast December 24, 2012, Technical Analysis

The EUR/USD pair fell on Friday, but found quite a bit of support at the 1.3150 handle as it bounced from that significant level. With Wednesday and Thursday both printing shooting stars, and the Friday candle pretty when essentially looks like a hammer, it appears this market ready to consolidate in this general vicinity. This is not surprise to us as the week ahead is a holiday week, and as such most traders won’t be willing to take large positions. However, or break down below the 1.3150 level would be a very sign that we could continue much lower, but a break above the 1.33 handle is very bullish. Until we get one of these moves, this pair will more than likely sit still.

EUR/USD Forecast December 24, 2012, Technical Analysis

Credit : FX Empire Analyst - Christopher Lewis

Weekly Price Action Trading Outlook for December 24th to 28th 2012

EURUSD – Euro/dollar moves lower from pin bar reversal

The EURUSD saw a dramatic shift into last week’s close as the pin bar signal that we discussed in Wednesday’s commentary saw price move lower. It’s worth noting that on Thursday price retraced to just above the 50% level of Wednesday’s pin bar, allowing for a 50% entry strategy to be used on this pin bar. This is one of the pin bar entry techniques discussed in my trading course and it allows for a tight stop loss placement and huge potential risk reward. Going forward, it looks like sellers have control of the market at this point and we could see this short-term bearish momentum continue this week. There’s a bearish pin bar on the weekly chart and the 4 hour formed pin bar sell signals late last week. Thus, if this market continues lower this week and can break down below near-term support at 1.3125 we could see a larger move lower. However, we need to keep an eye on the price action near 1.3125, if the market shows strength and rejection of lower prices near that level we might see the market resume it’s previous bullish momentum.

Forex Trading Commentary by Nial Fuller