EUR/USD: Levels, Ranges, Targets

Yesterday’s overbought 5 day average at 1.1845 hit its upper target at 1.1905 then began the drop. The vital break point below was 1.1887 and this point broke at the time of the post. What remained as targets upon the 1.1887 break was 1.1878, 1.1875, 1.1864 then 1.1847, 1.1843, 1.1845 average and 1.1829 and 1.1821.

EUR dead stopped and bounced at 1.1827 and now trades at 1.1873. I expected the bounce at 1.1847, 1.1843 and 1.1845. The significance of 1.1847 is represented because its the central bank level. This means any price under 1.1847 became a free trade and it highlights the importance to know price location and associated vital break points. Central banks offer free trades every trading day. Despite the 1.1840’s, nothing was missed as the free pips came from 1.1820’s.

The minor aspect to yesterday’s trade was EUR/USD from the 1.1905 break was already into its drop and the entry at 1.1905 was the perfect point. The trade was caught in the middle of the drop.

Today’s 5 day average at 1.1884 reveals a trend just underway. The 10 day is located at 1.1826 and the 5 day target at 1.1843 achieved objective. Outstanding targets below exist at 1.1858, 1.1843 and 1.1838. Above targets outstanding exist 1.1887, 1.1862, 1.1901 and 1.1922. The target at 1.1882 was hit and its the Gap between 1.1962 and 1.1887. Nasty move those Gaps. Actual drivers to today’s prices are the overbought 50 and 253 day averages.

Overall break points are located at 1.1799, 1.1724 and 1.2024. Break at 1.1799 and 1.1724 then longs are finished and new sell rises becomes the way forward.

The daily model is viewed as 1.1888 as the break point then 1.1903 and on to target 1.1917. At 1.1827 and 1.1814 becomes the bottom break point to target caution area at 1.1799. A break of 1.1799 targets 1.1764 and this is the free trade area 1.1799 to 1.1764 for longs. Obviously those few traders I agree to take into my trade service are not afforded the convolution offered here.

Brian Twomey