Weekly Trend direction: Bearish

Weekly trend reversal level: 1.3800
Key G7 resistance levels: 1.3650, 1.3720, 1.3800

Counter-trend opportunities:

Strategy: Whilst below the weekly trend reversal level sell rallies to resistance levels after an entry signal.

Today’s trade suggestion:
Interesting situation…Last week’s weekly candle formed a “Doji” just about at the 618 retracement level (see weekly chart) and the euro is more oversold than it has been for two years. However, bottoms often take a few weeks to form properly, and negative EU sentiment might still weigh on the euro for another week or two. It’s tempting to consider the weekly direction reversed, but I’d prefer to wait for another weekly reversal candle for confirmation. Until then, and whilst below 1.3800, G7 remains bearish. Resistance levels are at 1.3650 (where we are now), 1.3720 and 1.3800. There are small signs of reversal as I’m writing this report, with an hourly “hanging man” candle at the 1.3650 resistance, the two MA’s right where we are and an overbought stochastic. Try tiny shorts for a target of circa 1.3550.

Summary:
Sell near 1.3650 (or above if it fails) target 1.3550.