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29.11.2007 - Technical Analysis for EURUSD

  • Description

Date: 2007-11-29 09:58

After breaking the previous top on the level of 1.4906, I believe that the minimum range of market movement could be 1.5079 or 1.5099. On the other hand I am curious to see how the market will react within the boarders of the psychological barrier of 1.50.

 

Market: EURUSD
Interval: H4
Levels:
Support – 1.4710
Resistance – 1.4906

Description:

The end of the corrective movement on the EURUSD is very probable. Why?

  • The current corrective movement is equal to the previous correction (Pic. 1, yellow rectangles).
  • The forming of a simple correction (Pic. 2, ABC), typical for the EURUSD market.
  • The forming of the bullish engulfing candlestick formation (Pic. 2, yellow rectangle).

What could we be awaiting?

After breaking the previous top on the level of 1.4906, I believe that the minimum range of market movement could be 1.5079 or 1.5099. On the other hand I am curious to see how the market will react within the boarders of the psychological barrier of 1.50. Looking back at similar situations, I believe that this barrier should still be broken and should only resist for a short period of time, if any. This obviously does not change the fact that my minimum target are the two previously mentioned levels.

Keep in mind that the market should be observed at the time of breaking the previous top, in order to try and protect your position from a whipsaw.

Pic. 1

Pic. 2


Omar Arnaout