Weekly Price Action Trading Outlook for January 14th to January 18th 2013
EURUSD – Euro/dollar shows strength, looking to buy on a pullback
Last week, the EURUSD surged up through the recent highs at 1.3305 and this changes the short-term bias to bullish once again. For this week, we are waiting for a pullback to support / value where we will keep our eyes open for a price action buy signal to get long and join the uptrend.
The EUR/USD pair shot through the 1.33 level during the Friday session, in order to breakout and above a massive resistance. Having said that, we expect quite a bit of noise all the way to the 1.35 level, but do anticipate that the market will certainly find that level sooner or later. Because of this, we are willing to buy pullbacks as they come with signs of support, especially near the 1.33 handle.
If we managed to break above the 1.35 level, this would be the breaking of a massive inverted head and shoulders that measures for a move to the 1.50 level. This could be a multi-month or even year move in this pair, just like the trend that we had seen four or five years ago.
EUR/USD Forecast January 14, 2013, Technical Analysis