consolidation

Hi everybody! We mainly focused on EURUSD today, as the pair seems to be starting a consolidation phase 1.4490-1.4780 with direction to be settled during the next days. For now, it appears that the larger timeframes are somehow ambiguous, but the 1h and lower are showing possible retracement down after yesterday’s sharp move. Also noticed bearish signs on GBPUSD and AUDUSD short-term, however they seem to be part of larger consolidations.
Will keep an eye on the market for possible trading setups on these pairs.

EUR/USD Technical View

Euro printed a new high on Monday at 1.4915 just at the the up sloping trendline connecting August and September 2007 lows. The pair got in touching distance of the 1.4966 high and it still got a chance to get there in the next few days even if it doesn’t break decisively above the mentioned trendline. Forming a toppish pattern around the 2007 high or close to the 1.5000 psychological target will give bears a new opportunity to open shorts as we see the beginning of a bearish divergence on the higher timeframes. We didn’t expect the pair to move this high but after making a new high and showing some bullish momentum we are starting to look at what will happen if and when we will reach the 1.5000 level, like we said it’ll be a good place to short but there are already numerous voices in the markets that say it will go even higher.
Resistance Levels

• 1.5000– round number
• 1.4966- Nov 23rd high
• 1.4735 –Nov 9th High

Support Levels

• 1.4500- round number
• 1.4300 – Sept 30th High
• 1.4000 – Round number
• 1.3850 – July 24th High

(more…)