Good Afternoon traders,
last week euro has traded very nicely in respect to the fibs with few long term ambushes being hit to a tick.
Here is a look at Euro Dailys
ecdailyEuro remains in ambush consolidation zone with 200 day moving average now in the short ambush zone.
Ambush range expansions have been working very well in the futures markets recently, for example:
eurorangeexpansion
Here are key levels to watch for next week:
euro2500shareAfter founding support at fib consolidation level at 1.3364 euro made a nice retracement and will be retesting 1.3518 highs this week. If Euro breaks above those highs there are 2 major overhead resistance levels:
- 1.3595-1.3615 is 23.6% range expansion of two ambushes from the confluence where euro bounced, those levels would also be the second test of the big short ambush zone on the daily chart.
- 1.3720-1.3769 will be a HUGE level for the euro, as that would not only be 61% range expansion consolidaotin, frequent reversal point, but also double top with multi-month highs on the euro with 200 day moving average being right in that area.
On the way down euro should find support at the following levels:
- 1.3429 – very short term support at 50% retracement of Friday’s move (please not that if Euro trade above 1.3495 before pulling back that level will be different
- 1.3355-1.3364 – re-test of ambush consolidation zone where EC futures found support on Friday.
- 1.3317 – another ambush consolidation of the recent euro upmove
- 1.31 – big level of euro re-testing ambush zone of the late March rally
Good luck and good trading to all this week
Vlad