Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
FOREXAnalysis: The EURUSD technical picture continues to improve. On Monday, range was large (largest in at least 60 days…constitutes a JS Thrust) and CME volume was the largest since 8/2/12. Range and volume of this size are typical towards the end of moves. The January low at 12996 has held for 2 days, creating a 1x1 pivot in the process. Currently testing resistance from Friday’s low, bulls also face short term trendline resistance the rest of the week. Weakness below 12996 opens up 12875 and 12802 (200 day average is between those 2 levels). 13062 is estimated support ahead of 13018.
FOREX Trading Strategy: Evidence is constructive and I wouldn’t be short here but there isn’t enough evidence to rule out a final test or drop below 13018 either. 13062 and 13196 are levels to focus on in the short term.
LEVELS: 12875 12996 1306213144 1319613245