Spot Euro Forecast for 23rd January 2013

Spot Euro Forecast for 23rd January 2013

EURUSD failed just below the 100 week moving average at 1.3382, topping at 1.3372 and dived towards 1.3260/30 where we suggested exiting all shorts and buying in to longs expecting a good bounce. The market bottomed at 1.3267 so the levels worked quite well yesterday.

The 100 week moving average at 1.3382 could pose a problem again today and we have resistance again at 1.3395/1.3405 which should remain a very tough obstacle. A good chance therefore of a high for the day again if tested but if we do break above here the next target of 1.3491 should be achieved this week.

1.3310/00 is support but if this is broken we should see a move towards 1.3260/30. Once again we exit all shorts and buy in to longs here expecting a good bounce. We do need a stop loss below 1.3200 however for a test of the next support at 1.3150/25 which should offer an excellent buying opportunity.

Credit : FX Empire Analyst - Jason Sen

EUR/USD Forecast January 23, 2013, Technical Analysis

The EUR/USD pair went back and forth during the session on Tuesday, but closed well above the 1.33 handle. This shows us that 1.33 should continue to offer support, and that the real risk in this pair is probably to the upside. As for selling, we see quite a bit of support all the way down to the 1.32 area, and as a result it will be difficult to do. On the other hand, 1.34 looks to be very resistant at this point, it will be very difficult to break out of. Once we do though, this market should make a beeline towards the 1.35 level and possibly much, much higher.

Credit : FX Empire Analyst - Christopher Lewis

Trade Idea Wrap-up: EUR/USD – Stand aside

Candlesticks and Ichimoku Intraday | Written by Action Forex | Jan 23 13 15:39 GMT

EUR/USD – 1.3287

Most recent candlesticks pattern : N/A

Trend : Sideways

Tenkan-Sen level              :1.3319
Kijun-Sen level                 :1.3317
Ichimoku cloud top              :1.3319
Ichimoku cloud bottom          :1.3319

New strategy  :  

Stand aside

Position: -
Target:  -
Stop:- 

Despite intra-day rebound to 1.3353, current sharp retreat has retained our view that further choppy consolidation within early established range of 1.3258-1.3404 range would take place and weakness to yesterday’s low of 1.3268 cannot be ruled out, however, breach of support at 1.3258 is needed to signal a downside break of the 1.3258-1.3404 range has occurred and bring correction of early upmove towards 1.3220-25 (50% Fibonacci retracement of 1.3038-1.3404) but reckon 1.3190-00 would limit downside and bring another rise later.

On the upside, above said intra-day resistance would bring test of yesterday’s high of 1.3372 but break there is needed to suggest a possible upside break is underway instead for gain towards last week’s high of 1.3404, having said that, only above 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), then towards 1.3484 (61.8% projection), however, price should falter well below 1.3500-10 (psychological resistance and 61.8% projection of 1.2998-1.3404 measuring from 1.3258).

As near term outlook is still mixed, would be prudent to stand aside for now. 

Forex Market Commentary: EURUSD Continues to Consolidate, 23rd January 2013

Daily Forex Trading Commentary by Nial Fuller 

Trading Setups / Chart in Focus:

EURUSD – Euro/dollar continues to consolidate

Yesterday, in our members forum I made a post about the EURUSD discussing the potential for a move lower but insisting that we needed to see downside follow through to confirm any short entry. We can see that since then the market has just continued to chop sideways on the 4 hour and daily chart and as of now we are taking a neutral bias on this market.

Anyone looking to trade this market should wait for a convincing break and close above or below this current consolidation range before looking for an entry. Some clues on the intra-day chart would be a strong 4 hour pin bar reversal signal, but even reversals become less effective in consolidation. This market is simply too indecisive right now to try and pick a direction, so traders are going to be best served by exercising caution until we get a strong break out from this current choppy price action.

Euro (€) / US Dollar ($) (EUR/USD) Mid-Session Update for January 23, 2013

A strong surge in the U.S. Dollar is triggering a rapid sell-off in the Euro at the mid-session. The move is also putting a bearish spin on U.S. equity markets which could be a sign of increased demand for lower-yielding assets. 

Although the news isn’t clear at this time, developments in the debt ceiling negotiations may be spooking traders. If the deal to extend the debt ceiling by four months gets taken off the table, the Euro may weaken further as this would indicates a serious shift in sentiment to safety. 

Daily EUR/USD Chart

Technically, the EUR/USD is trading in a short-term range bounded by 1.3403 to 1.3256. The mid-point or pivot price of this range is 1.3330. For much of the session, the Euro straddled this pivot price, suggesting an indecisive market. Shortly before the mid-session, the market broke sharply, stopping short of an uptrending Gann angle at 1.3257. 

The main bottom at 1.3256 and the Gann angle at 1.3257 combine to form an important support cluster. Because of the downside momentum, traders have to watch this cluster carefully. A failure to hold at this level should trigger a rapid break. Not only will the trend change to down on the trade through 1.3256, but last week’s weekly closing price reversal will also be confirmed. 

Hourly EUR/USD Chart

A confirmation of the weekly reversal will set up a further decline. Since the main range is 1.2997 to 1.3403, traders should watch for a near-term correction into its retracement zone at 1.3200 to 1.3152. 

The 60-minute chart shows that the market has been range bound for several hours. It also shows clearly that a trade through 1.3256 could trigger an acceleration to the downside since the nearest support level is 1.3038. 

Credit : By FX Empire Analyst - James Hyerczyk