EUR/USD: Bearish Channel Toward 1.33
PipHut | Jul 31, 2014 03:31AM ET
EURUSD Daily Analysis: US GDP numbers came in much higher than expected, at 4.0% vs expectations of 3.0%, pushing the USD into a strong rally against most other pairs as the prospect of a strengthening US economy weighs on the the expectations of an earlier-than-expected interest rate hike. Technically we remain in a strong 4h and daily downtrend, with strong support not seen until 1.33, around the November 2013 lows.
Our Preferred Trades*: This downtrend is is need of a correction, however, and we are looking to get long with confirmation, of course, around 1.3350 targeting a rally back up to 1.35. We will look for a combination of an RSI divergence plus candlestick confirmation. On the flip side, we will also look to short rallies to the top of its bearish channel around 1.34 with bearish confirmation, in anticipation of another drop. So multiple setups on either side of the aisle here, depending on your bias. Alerts will be sent out if either one of these setups develops for us.
Yesterday’s EURUSD SwingPRO Signal Result: No setups triggered yesterday as no rally meant that our short remained unfilled.
Today’s SwingPRO Signal: Prefer support breaks in line with bearish trend, though a break above falling resistance would be a bullish signal.
*CandlePRO: CandlePRO can be used in conjunction with our daily analysis and “our preferred trades.” For example, if we prefer “going short” or “selling a rally” then we would look for bearish candlestick signals after a rally or near resistance levels. Alternative if we prefer “going long” or “buying a dip” then we would look for bullish candlestick signals on price drops or near support levels.
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