EUR/USD: Double Bottom In Place
Carol Harmer | Nov 24, 2014 02:18AM ET
The euro broke lower overnight and hit 1.2361 support. This was the previous reaction low on the 7th of November and therefore all short positions have been covered. Now there's a Double Bottom in place, and given that we have traded lower to this important support, there is scope for
a correction early in the session.
We have the daily pivot at 1.2443. This ties in with chart resistance and also the short term 38.2 Fib level, so we could see rallies extend to here this morning. We would be looking to cover any longs and resell a bounce to these higher levels. The 4-hourly time frame chart is showing that we are oversold and beginning to turn, so we need to keep our eyes on this one. And if we can trade above 1.2445, look for further correction with a possibility of reaching 1.2540/70 once more. This should be the top, therefore we put shorts in place, looking for another leg lower. We still have trendline support at 1.2231 from the weekly charts. A sustained break of 1.2360 would push us lower to this support zone.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.