EUR/USD Analysis 6 August
Weekly Trend direction: Bullish
Weekly trend reversal level: 1.2860
Key G7 support levels: 1.2960/80, 1.2920, 1.2660/70
Counter-trend and scalping opportunities:
Strategy: Whilst above the weekly trend reversal level buy dips to support levels after an entry signal.
Today’s trade suggestion:
A messy old day on Friday (as expected on the last Friday of the month) saw some nasty whipsaws leaving the price essentially unchanged since Thursday. This week we are bullish yet again, with weekly support at 1.2860 and various support levels above there at 1.2960 and 1.2920. The strategy remains unchanged – but the euro into
dips after a clear g7 entry signal with a target of 1.3100 and perhaps higher. A word of caution – the price has reached just shy of the weekly 38% retracement level (see weekly) chart, and the euro is more overbought than it has been since October 2009. This means we are possibly due for a sharp correction, which could take us below the weekly trend reversal level in quick time.
Update: A messy week, with whipsaws yesterday and no real direction. Still, we managed a good profit from the euro in session, and we’ll continue to look to buy dips to support. It’s NFP Friday so I won’t be trading until possibly after the NFP news is released.
Summary: Buy dips to support levels listed above after a clear G7 entry signal, allowing for a sudden pullback as far as 1.2500. First target 1.3000 and then 1.3120.
