In this brief post I share a chart of the EUR/USD showing where we could move next.
We are currently witnessing a move higher in the EUR/USD which is pushed by program trading on the 15min timeframe. Failure of the current sequence is still 1.3629 at this time. Price could just reach the next level of daily resistance and entry short at 1.3720. This would be a good present for shorts.
I have provided a blueprint and strategy for the beginning of year 2014 for the Euro on Friday January 3rd in an interview at the FXStreet.com LAR .Please, review that video to put the below chart in context of what is happening with the Euro at the moment.
It looks like the Euro is going to test the 1.3720 area where participation from Program Trading on the downside can be anticipated, and a real gift to sellers who are not yet in. In fact, when the current 15min rally and program trading sequence exhausts itself, price will be ready to correct.
If that happens the Euro should then start trading lower initially into the 1.3470 level (1st target) and, after that, into the 1.3340 area (2nd target). We could witness a relief rally from the 1.3430 area, and then start a continuation lower.
Remember that, if there are no major changes, the Euro is due to see the 1.2970 area before weekly longs kick in again. Please review the EUR/USD Blueprint and Strategy for 2014 video.
A first area of support will be just below the second target area at 1.3330. That is where we could witness some temporary profit taking on this market, which could to be shortly ridden again by Program Trading on smaller timeframes, 240min and 15min.
Notice that price projections in my method are not from/to random levels and do not follow Elliot Wave, DiNapoli levels or other methods, but rather a proprietary method based on modeling effects of Program and Algorithmic Trading on price.
My method helps “level plain” the trading game showing what banks, institutions and big hedge funds are actually doing (and not what they are saying they are doing). Follow me to learn how to spot the Algorithmic Trading footprints.
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Have a great evening.
Giuseppe, the FibStalker