Euro-Dollar Analysis, February 5th 2013 (English Language)

Hello traders,

Here below please find attached the video-analysis of the Euro FX currency futures for today February 5th:

This is an update on the Euro FX futures (4-hour charts) with the relevant levels to watch.

Notice that, to the way I play the markets, current price dynamics in the Euro is all about trying to catch the next swing higher into the 1.3850 level. I am non interested in few pips moves. In the morning we had a reaction just 6 pips above the 1.3456 level. So the swing move could be on-going already. This swing long is invalidated if price moves below 1.3390 level (I don’t think this is going to happen, but we should always expect anything from the markets).

Euro FX futures contract, 4-hour chart - February 5th, 2013

Euro FX futures contract, 4-hour chart – February 5th, 2013

We could see that the 1.3580 area acted as a resistance at this stage and is still resistance that must be won by bulls for a continuation higher (and this is straightforward…, picture above).

Support showed at the 1.3510-15 area can bring price into 1.3570 area (1st target) and then 1.3614 (2nd target). The 1.3620 level is paramount. Above it price dynamics will confirm the support area at 1.3460 and stops below 1.3390 should be ‘safe’ (if such a thing exists in the markets). If price come back to 1.3460 support after 1.3620 is violated on the upside we can ‘count’ on a ‘W-for-Victory’ pattern, i.e. a bounce into higher prices. As usual these are my two scenarios:

Scenario 1. If we reach 1.3620 not only the support in the 1.3460 area is finally confirmed, but also the target in the 1.3840 area. Price can keep moving higher and I am going to target the 1.3850 area, and a safe level to take profits would be 1.3832.

Scenario 2. If we break the 1.3600 level on the upside we can still come back to retest the 1.3460 area, but this will turn into a ‘W-for-Victory’ pattern and we could witness participation at the 1.3460 area. Same target at 1.3832 and 1.3850.

Notice that price could continue all the way into the 1.4030 area, but there it would find profit taking and a firm resistance, so shorts could be played.

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Have a good day

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Filed under English language, Euro FX analysis and trade setups videos, Forex

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