Inside the Currency Market: EUR/USD

EUR/USD target achieved at 1.1300 from 1.1227 and an 18 pip violation. I haven’t reported extensions due to price failures long before targets in last 3 days. Extensions this morning to offer context to 1.1319 were 1.1307, 1.1315, and 1.1330. We’ll know at the China open if extension violation has any significance. So far the answer is no. The mid section still dictates prices while the long end of the curve is barreling lower. This tells us on a longer term view, rallies are meant to sell and are corrective.

USD pairs coming in about an hour as data is released.

EUR/USD. Bottom. 1.1252, up 81 pips since this morning. Range break above 1.1347 and 1.1388, Below 1.1229. Overbought sell point 1.1385, Failure point 1.1351. Strategy. Longs above 1.1308, Target 1.1385. Then reverse short to 1.1346. At 1.1351, reverse to 1.1329. Points on the way up, 1.1313, 1.1318, 1.1326, 1.1334, 1.1342, 1.1351, 1.1358, 1.1368,1.1385.

Shorts below 1.1308, Target 1.1280. Watch here for reversal to 1.1308. Points on the way down, 1.1305, 1.1300, 1.1297, 1.1293, 1.1289, 1.1285, 1.1282, 1.1267, 1.1252 Bottom. Point 1.1280 must cross to go higher.

Brian Twomey, Inside the Currency Market, btwomey.com

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