Trade Idea: EUR/USD – Buy at 1.3330

Candlesticks and Ichimoku Intraday | Written by Action Forex | Jan 18 13 06:57 GMT

EUR/USD – 1.3386 Most recent candlesticks pattern : N/A Trend : Up Tenkan-Sen level              :1.3377 Kijun-Sen level                 :1.3333 Ichimoku cloud top              :1.3326 Ichimoku cloud bottom          :1.3292 Original strategy :  Buy at 1.3315, Target: 1.3415, Stop: 1.3280 Position: - Target:  - Stop:- New strategy  :   Buy at 1.3330, Target: 1.3430, Stop: 1.3295 Position: - Target:  - Stop:-  As the single currency has maintained a firm undertone, suggesting a retest of recent high of 1.3404 would be seen, break there would confirm early upmove has resumed and extend gain to 1.3440-45 (50% projection of 1.3038-1.3404 measuring from 1.3258) but reckon 1.3484 (61.8% projection) would hold from here, price should falter well below 1.3500-10 (psychological resistance and 61.8% projection of 1.2998-1.3404 measuring from 1.3258).  In view of this, we are looking to buy euro on dips as the Kijun-Sen (now at 1.3333) should limit downside. Only below the Ichimoku cloud bottom (now at 1.3292) would defer and prolong consolidation, risk test of yesterday’s low at 1.3270 and possibly to previous support at 1.3258 but reckon 1.3220-25 (50% Fibonacci retracement of 1.3038-1.3404) would limit downside.

EUR/USD Forecast January 18, 2013, Technical Analysis

EUR/USD pair had a strong showing on Thursday as we bounced from the 1.33 handle and closed near the recent highs at 1.34. In fact, it appears that we are dead set on testing that level again and perhaps pressing to the 1.35 level in the short-term. If we managed to get to 1.35 and break above it, this suddenly becomes a long-term buy-and-hold type of proposition. On the other hand, if we managed to break down below the 1.3250 level, we would suspect that this pair is going to break down a little bit. Nonetheless, it appears that bullishness prevails in this market and 1.35 is much more likely than 1.32 at this point.

Credit : FX Empire Analyst - Christopher Lewis

Euro (€) / US Dollar ($) (EUR/USD) Mid-Session Update for January 17, 2013

A well-received Spanish auction turned the EUR/USD higher early in the session and the Forex pair never looked back. Volatility is high today after the early rebound, erasing all of the loss from earlier in the week. 

Strong momentum is driving the Euro higher against the dollar at the mid-session with the market rapidly approaching this week’s high at 1.3403. A breakout above this level will put the market on pace to make a 10-month high. 

Daily EUR/USD Chart

One sign of strength is the Euro’s ability to overcome a short-term retracement zone at 1.3330 to 1.3347. This area is now intraday support. The next sign of strength will be crossing over to the bullish side of a steep uptrending Gann angle at 1.3357. This move could set off a strong rally. 

The main trend is up. A rally through 1.3403 should trigger a breakout to the upside with 1.3491 the next likely downside target. A trade through 1.3256 will turn the minor trend down. It will also serve as a sign that investor sentiment is shifting to the downside. If this occurs, look for the start of a move to 1.3200.

Credit : By FX Empire Analyst - James Hyerczyk