Trade Idea Wrap-up: EUR/USD – Buy at 1.3485

Candlesticks and Ichimoku Intraday | Written by Action Forex | Jan 30 13 15:57 GMT

EUR/USD – 1.3567

Most recent candlesticks pattern : N/A

Trend : Near term up

Tenkan-Sen level              :1.3533
Kijun-Sen level                 :1.3510
Ichimoku cloud top              :1.3446
Ichimoku cloud bottom          :1.3441

Original strategy : 

Buy at 1.3485, Target: 1.3585, Stop: 1.3450

Position: -
Target:  -
Stop:-

New strategy  :  

Buy at 1.3485, Target: 1.3585, Stop: 1.3450

Position: -
Target:  -
Stop:-

As the single currency has maintained a firm undertone after breaking previous resistance at 1.3480, suggesting recent upmove is still in progress (indicated upside target at 1.3545-50 - 61.8% projection of 1.3265-1.3480 measuring from 1.3415 had been met) and further gain towards 1.3600-10 would be seen, however, near term overbought condition should limit upside to 1.3630 (100% projection of 1.3265-1.3480 measuring from 1.3415), risk from there is seen for a retreat later.

In view of this, we are looking to buy euro again on pullback, below 1.3530-35 would bring minor correction to the Kijun-Sen (now at 1.3510) but renewed buying interests should emerge above previous resistance at 1.3480. Below the Ichimoku cloud (now at 1.3441-46) would signal a temporary top is formed and risk correction back to yesterday’s low at 1.3415.

Euro (€) / US Dollar ($) (EUR/USD) Mid-Session Update for January 30, 2013

After an early session breakout through a major 50% price level at 1.3491, the EUR/USD is still showing signs of strength at the mid-session. Now that the market has crossed over to the bullish side of the retracement zone, it is going to have to sustain support over the 50% level or the trend could reverse. 

Besides the retracement zone support, the uptrending Gann angle at 1.3463 is providing guidance and direction. A trade under this angle will be a sign that the trend is weakening. 

Daily EUR/USD Chart

The 60-minute chart shows that the EUR/USD surged shortly after the European market opened. The first drive was into resistance at 1.3562. This was followed by a near-term correction to 1.3532. The subsequent rally took the market to 1.3577 where is formed a closing price reversal top. My hourly work suggests that a break under 1.3557 could trigger the start of an intraday break. 

Hourly EUR/USD Chart

The first downside target is the uptrending Gann angle from the 1.3532 bottom at 1.3552. Based on the daily range of 1.3481 to 1.3577, a late session sell-off could trigger an even greater break into a retracement zone at 1.3529 to 1.3518. 

Since the main trend is up, 60-minute traders have to watch the action near 1.3532. A trade through this price will turn the main trend down. 

Credit : By FX Empire Analyst - James Hyerczyk 

EUR/USD Forecast January 30, 2013, Technical Analysis

The EUR/USD pair fell initially during the Tuesday session, but found enough support at the 1.340 level to bounce and form a fairly positive candle for the day. Just above lies the 1.35 resistance area, an area that is the neckline from a massive inverted head and shoulders. If we can get above that line, we believe this becomes a massive buy-and-hold type of situation as the move measures for a potential target of 1.50! With that being the case, we think that the breakout could happen in the next day or two, and when we get that daily close above the 1.350 level, we are more than willing to start buying.

EUR/USD Forecast January 30, 2013, Technical Analysis

Credit : FX Empire Analyst - Christopher Lewis