Trade Idea Wrap-up: EUR/USD – Buy at 1.3295

Candlesticks and Ichimoku Intraday | Written by Action Forex | Jan 24 13 15:59 GMT

EUR/USD – 1.3373

Most recent candlesticks pattern : N/A

Trend : Sideways

Tenkan-Sen level              :1.3333
Kijun-Sen level                 :1.3322
Ichimoku cloud top              :1.3319
Ichimoku cloud bottom          :1.3319

New strategy  :  

Buy at 1.3295, Target: 1.3400, Stop: 1.3260

Position: -
Target:  -
Stop:- 

As the single currency has staged a strong rebound after finding good support at 1.3265 yesterday, suggesting a test of 1.3398-1.3404 would be seen, however, break there is needed to 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).

In view of this, we are looking to buy euro on pullback. Below said support would risk test of support at 1.3258 but below there is needed to signal a downside break of early established range of 1.3258-1.3404, 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.

EUR/USD Forecast January 25, 2013, Technical Analysis

The EUR/USD pair shot straight up during the session on Thursday as the Euro gained against pretty much everything. However, we are still within the consolidation area that is bordered by 1.34 and 1.3250, and as such do not consider this market broken out yet. We definitely favor the upside at this point in time, but recognize that there is probably going to be a ton of resistance between 1.34 and 1.35 going forward.

Having said all that, if we managed to break above the 1.35 level we would be breaking the neckline of a massive inverted head and shoulders. This inverted head and shoulders is so large that it suggests that we would go another 15 handles higher to the 1.50 level. This is a significant move, and can only be thought of as an overall long-term type of trend.

If you have not been trading Forex for over four years, you may not be aware of the fact that he used to be as simple as buying this pair every time it pullback. If we can get above the 1.35 level, it may return to that old type of trading environment. Looking back, it’s easy to see how it would have been some of the easiest money you could’ve made, and as a result we could be entering a new phase in the Forex markets overall.

If we do Internet type of market, you will find that you come back to this pair over and over again, and if it’s anything like it used to be you may even see a lot of traders specializing in just this market. It used to be so profitable that people literally would trade this pair only, with the occasional trade in the cable pair or the Yen.

Looking at this chart, it will more than likely be a serious fight to get to that point. However, it certainly looks like the Euro is starting to pick up steam in the absolute worst fears of a European meltdown have been avoided. With the European Central Bank willing to back up the bond markets on the continent, we may just be entering a new phase in Europe.

EUR/USD Forecast January 25, 2013, Technical Analysis

Credit : FX Empire Analyst - Christopher Lewis

EUR/USD Forecast January 24, 2013, Technical Analysis

EUR/USD went back and forth during the session on Wednesday a very similar manner as to how I did it on Tuesday. Because of this, the market does look very confused and like it wants to grind around in this consolidation area, leaving us to be essentially neutral on this currency pair at the moment.

Having said that is most certainly in and out trend these days, and as a result we think that eventually we will breakout to the upside. But until we get above the 1.34 level, we have to consider ourselves still within the consolidation area that starts in the 1.3250 level. With that being said, we are flat.

EUR/USD Forecast January 24, 2013, Technical Analysis

Credit : FX Empire Analyst - Christopher Lewis

Euro (€) / US Dollar ($) (EUR/USD) Mid-Session Update for January 24, 2013

After surviving an attempt earlier in the week to change the trend to down on the daily chart, the EUR/USD rebounded and is now in a position to break out to the upside. Standing in the way of this move is a pair of tops at 1.3397 and 1.3403. 

On the downside, the change in trend level is the January 16 main bottom at 1.3256. A trade through this price will not only change the daily trend to down, but it will also confirm last week’s potentially bearish closing price reversal top. 

Daily EUR/USD

An uptrending Gann angle at 1.3277 and the pivot price created by the 1.3403 to 1.3256 range at 1.3330 should be considered support levels. Since the market is currently trading over the pivot price, one has to conclude that there is a bias to the upside. 

Monthly EUR/USD

The monthly EUR/USD is also indicating a bias to the upside. This month the EUR/USD broke through a long-term Gann angle at 1.3340. Since this angle provided resistance and direction for 20 months, the breakout above it is a significant event. 

Based on the long-term range of 1.4940 to 1.2042, the midpoint at 1.3491 should be considered the next upside target.

Credit : By FX Empire Analyst - James Hyerczyk