EUR/USD
Weekly Trend direction: Bullish
Weekly trend reversal level: 1.1870
Key G7 support levels: 1.2150*, 1.2080, 1.2000, 1.1950
Counter-trend opportunities: 1.2280, 1.2370
Strategy: Whilst above the weekly trend reversal level buy dips to support levels after an entry signal.
Today’s trade suggestion:
Last week’s (almost piercing pattern, and this week’s break above the weekly reversal level, mean that I have
turned bullish on the euro. We need to be careful on this one, as the overall trend remains bearish, as does
sentiment from the Euro zone. This means that the counter-trend levels above at 1.2280 and 1.2370 are not only
potential good exit levels for long trades, but also chances to sell the euro if and when we get there. Support
levels below are listed above, with 1.2150 and 1.2080 being the key levels if the upward trend is to continue with
good momentum. Watch and wait for a clear G7 entry signal before buying – targets as above. We are into the
middle of June – historically a period for good strong trends before the holiday doldrums during July and August.
Summary:
Buy dips to supports at 1.2150/1.2080 after a clear G7 signal. Short term target 1.2280 and then 1.2370.