On Monday (October 17) I wrote “A number of the EUR pairs look like they may be rolling over, one with the most potential could be the EURJPY. The pair had a good run up from the September low around 112.00 to a recent high at 116.30. The pair retraced to the 23.6 and 38.2 Fibonacci levels last week as the 20 & 50 DMA and the 50.0 Fibonacci levels provide support around 114.00-114.12. A breach and break of this level will could see a fall to Target 1 at 113.00 and Target 2 at 112.00, both psychological round numbers and multiples of the 14 day ATR which is currently 107. This move would be in line with the longer term Weekly and Monthly time frames”
The trade was triggered on Tuesday (October 18) and following the ECB rate announcement and press conference yesterday, Target 1 (113.00) was reached earlier today for a net gain of 112 pips.
The EURUSD SHORT position had been open from last week (October 12) when I wrote “EURUSD’s technical picture remains one of bearish momentum. The pair has broken back below, and posted two daily closes below, the 200-day moving average, which is presently sitting at 1.1172. The clear break of the 200 DMA, which was confirmed yesterday, generated a SHORT position this morning at 1.1035. The next downside targets are Target 1 1.0950, the recent July Low and Target 2 1.0917 the June low.” Both Target 1 and Target 2 have been achieved in the last 24 hours as the pair broke the key 1.09500 level for a net gain of 118 pips. The next support area is the March low at 1.0824.
Chief Market Analyst
If you wish to get the latest forex brokers news,you can visit our Top Forex Brokers official website:
About Janne Muta, HotForex’s Chief Market Analyst
Janne Muta is a seasoned industry professional with over 16 years experience in the global markets. Originally from Finland, Janne has worked for institutions in both Helsinki and London as an institutional fund manager, global market analyst and FX educator.
Traders and fund managers from around the world have benefited greatly from Janne’s technical analysis methods. The indicators and price action based trading models he has developed, have, after rigorous testing, proven to be invaluable in identifying high probability trades.
“My mission is to help you to become a confident and successful trader”
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.