- 4H: The near-term EUR/USD rally was held near 61.8% retracement (1.36). (Refer to Daily Video Technical Update 2.25.2010; first pair).
- The stochastic is starting to crossover in the bearish zone, indicative of a market maintaining the bearish mode (SMA50<SMA200).
- The 1.3450 level was held twice in the current decline and looks to provide support again. Our decline this week would end up developing a declining triangle.
- Note the 3-wave structure (a-b-c-) of the waves within the triangle. These indicates that the market does not have a impulse direction yet.
- Wait for a breakout below 1.3450 for a bearish continuation case, or a break above the declining trendline to start preparing for the bullish case.
- Weekly: Looking at the weekly, we see that the market is currently at a cluster of fibonacci levels (100% projection, 61.8% and 78.6% retracement.)
- You can also see that if the market continues to decline, the next cluster’s center of gravity is near the 1.31 area. This can be your intermediate target if the market breaks below 1.3450 AND establishes a top below that.
Fan Yang
Currency Analyst
Commodity Trading Advisor
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All screenshots are made from VT Trader 2.0 and are of actual market data at the time of the screenshot.