20/01/15 EURUSD retraced to resistance of 1.16


EURUSD retraced to resistance of 1.16 after rebounded from 1.460. 80, 120 and 200 EMA are continued to point further downwards with and increase in market strength as indicated by ADX. Market prices continued to form lower highs and lower lows with very few bullish candles seen. These indications illustrated a relatively stronger downward trend of the market. Current price of the market is trading around the Fibonacci Extension of 161.8, which at this level may have possible entries to the current downtrend. EURUSD retraced to resistance of 1.16 after rebounded from 1.460. 80, 120 and 200 EMA are continued to point further downwards with and increase in market strength as indicated by ADX. Market prices continued to form lower highs and lower lows with very few bullish candles seen. These indications illustrated a relatively stronger downward trend of the market. Current price of the market is trading around the Fibonacci Extension of 161.8, which at this level may have possible entries to the current downtrend.

 

Market price is seen retracing to Fibonacci Extension of 161.8, ADX indicated that the retracement is weak as the strength of the market decreases. Stochastic continued to rise towards the level of 79. Above that level, with corresponding supporting indications, look out for possible entries to short. Market price is seen retracing to Fibonacci Extension of 161.8, ADX indicated that the retracement is weak as the strength of the market decreases. Stochastic continued to rise towards the level of 79. Above that level, with corresponding supporting indications, look out for possible entries to short.

Market price respecting the Fibonacci Extension level of 161.8% as a resistance to the up side. Price was retraced to the that level from 1.460. 55 EMA was seen as acting as a second level of resistance at 1.160. As the price rebounded slightly from the resistance level, ADX indicated that there was an increase in the market strength as the price continued to move downwards. This illustrated that the market is still trading in the downtrend strongly and any counter trend trading is not advisable.  There will be news for EUR to be released later in the day and it would be the German ZEW Economic Sentiment.  It was forecast that the result would be 40.1, which would be higher that the previous. However if the result would be lower that the previous of 34.9, it would continue to drive the market downwards. Market price respecting the Fibonacci Extension level of 161.8% as a resistance to the up side. Price was retraced to the that level from 1.460. 55 EMA was seen as acting as a second level of resistance at 1.160. As the price rebounded slightly from the resistance level, ADX indicated that there was an increase in the market strength as the price continued to move downwards. This illustrated that the market is still trading in the downtrend strongly and any counter trend trading is not advisable. There will be news for EUR to be released later in the day and it would be the German ZEW Economic Sentiment. It was forecast that the result would be 40.1, which would be higher that the previous. However if the result would be lower that the previous of 34.9, it would continue to drive the market downwards.

 

Trend Direction
 S3
S2
S1
R1
R2
 R3
 Entry
Stop Loss
 Exit
Slightly bearish 1.105 1.126 1.141 1.160 1.190 1.210  1.157  1.165 1.110

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