Saturday, February 19, 2011
EUR/USD
I Look for another leg up on this pair. It is a tough read early this week so I went to the USD/JPY for some clues. To me it looks as if we might take another leg down into move fib territory on the 4hr chart. once we get into this 82.50-82.60 area I look for some dollar strength. If this is the case the euro should make another leg up to 1.378 then I see a fib retrace to 1.3600 area which will pick up buyers and possibly merit a test of the highs at 1.3861 and possibly a 1.3900 target 1 and then a 1.397 target 2 which will obviously bring on a strong push to 1.4000 pych level which I will sell off this level. It would be interesting if this level matches up with a weekly pivot level? We did hit WR1 Friday and that is where price stalled. If WR1 holds then downside will prevail. I will just play it accordingly to price action. We will see????
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