• Online Forex trading Community

EUR: Possibly attempt very small longs at 1.4060

Nicole Elliott from Mizuho Corporate Bank at 01/27/10



Comment: Stuck, for the time being, in a surprisingly small range just above the 50% Fibonacci retracement from April 2009’s low (not October 2008’s low). Over the next few weeks we feel the Euro should stabilise and form a new interim low but this could be a slow, nerve-wracking process with a series of cautious downside probes.

Strategy: Possibly attempt very small longs at 1.4060; stop below 1.4000. Short term target 1.4180 but be ready to re-buy on a sustained break above 1.4225 for 1.4400.


Comment: Trading at the lowest price in months, at the 50% Fibonacci retracement. Note the large ‘spike low’ at 124.38 in the week ending May 3 2009 – you have been warned. A weekly close below 125.65 (50% Fibb), which happens to be the lower edge of the flat-bottomed Ichimoku ‘cloud’ in early April should add to bearish momentum which is already stronger than it has been in a year. Other yen crosses confirm and may actually have more downside potential.

Strategy: Attempt small shorts at 125.50 but only if prepared to add to 126.50; stop above 128.55. Short term target 124.45, then 122..45.


Comment: Dreary really as we continue to hover under the Ichimoku ‘cloud’, though in a potential inverted ‘flag’. Stand aside if possible. Strategy: Possibly attempt very small longs at 1.6135; stop below 1.6070. Short term target 1.6265/1.6300.


Comment: Dropping to the 50% Fibonacci retracement support and the top of a relatively thin Ichimoku ‘cloud’ as expected. Expect a little hesitation, probably in a small range, around here today. We shall expect a drop to 61% retracement (88.25) this week or early next week.

Strategy: Sell at 89.25, adding to 89.65; stop above 90.65. Short term target 89.00, then 88.50/88.25.

Main Menu