Hello Traders, I’m Mani and I’m the writer of Trade 77 section, please follow me on twitter for further updates.
Today’s morning technical idea is for EURUSD.
In the weekly chart above we can determine from previous bearish engulfing candle that consolidation is on the way. Rally from 21st August needs some correction and for this instance I drew Fibonacci retracement for this period of time and line #2 is the 50% level.
Line #1 is the previous low at 1.3572 and I think this level is now a short term support, breaking this level might be hard for single currency.
Also we can see an ABCD pattern completed in the weekly chart, but trading this pattern in longer term time-frames is not a good advice and I use this to determine short-term trends.
In the daily time-frame we can find out that 20sma and 40sma is very close to each other and are likely to cross.
Usually in these situations we should see some ranges to help moving averages to cross easily.
So If support #1 at 1.3572 going to be broken then we might see the price at 1.3500 and then 1.3435 but in the other hand after a bounce from 1.3572 we might see the price touching 1.3750 (previous high) and then 1.3800 and 1.3850 (38.2 fibo level in H4 chart)
I have to note that the overall trend is still bullish untill the sentiment changes for the US Dollar.
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