hereunder is you video-analysis for the Euro FX currency futures:
First and foremost it’s important to notice that the 1.2737 level has been definitely violated on the downside and the Euro should now move into the 1.2620 area, the next support area. I anticipate that the next intermediate leg higher in the Euro should start from that level.
In the last days program trading, including professional traders, did not have the opportunity to trade the Euro effectively, or at all. The short setup in the 1.2900 area, corresponding to the reaction higher after Obama ri-election, was never touched. The next short extension setup in the 1.2800-05 too did not trade (too wide of a front-run) and not even the traditional measured move from the highs of Wednesday to yesterday’s lows in the 1.2800 area traded this morning.
Thus the market is moving downwards without offering entry opportunities. This behavior however confirms that the 1.2887 level will be very important going forward to allow the identification of failure of the current sequence of downwards movements. At some point, probably next week, we will be able to identify the exact price level whose violation upwards will decree the end of the sequence on the downside, on the daily timeframe. Should such violation happen after price will have tested the 1.2620 area, this fact will allow support confirmation, the start of the new intermediate long leg in the Euro and the end of the Dollar Index rally.
At this moment we need to show patience and let price show the way. This weekend I am going to send an update to let you know the Trading Plan for the Euro thus enabling you to participate in the intermediate move.
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