Currencies | Aug 13 2013
By Forex Traders Corner
On August the 2nd we saw the EURUSD rally on the back of the US non-farm payrolls report, with numbers worse than expected, and it has been steadily moving higher towards 1.3385. We notice that we have a divergence developing below with our Awesome oscillator on both the 1 hr and 4 hr charts. This divergence is warning us of a potential reversal on the EURUSD. We have placed a pending sell limit order ahead of the level being reached with a stop above the high of 1.3415 at 1.3435. We believe that this will be a major turning point for the EURUSD. We look to find support at around 1.3300 and if we can get below this level we could see the rate accelerate to the down side.
We have been triggered into a short trade on the EURUSD during Friday's trading; we are currently up around 50 pips and approaching our support level at 1.33000. We expect a bounce back up from this point before the down move continues.
As long as we remain below 1.3415 the potential of a major downwards move remains.
Content included in this article is not by association the view of FNArena (see our disclaimer).
Visit Forex Traders Corner at www.forextraderscorner.com/.
Technical limitations
If you are reading this story through a third party distribution channel and you cannot see charts included, we apologise, but technical limitations are to blame.
Forex Traders Corner Pty Ltd (Australian Company Number 163 991 428) (“FXTC”) is a corporate authorised representative (CAR: 441932) of Olive Financial Markets Pty Limited (Australian Company Number 145 551 739) and a holder of an Australian Financial Services Licence (AFSL: 390906) (“Olive”). The website is for informational purposes only and to assist persons in considering whether to engage FXTC for education and mentoring in trading. Olive and FXTC, and each of their respective associates, officers, directors, independent contractors and employees do not provide advice on this website or otherwise as part of the services provided by FXTC. In making any statements on this website or otherwise Olive and FXTC have not taken into account the personal circumstances of any person. Before making an investment or trading decision whether or not based on any advice, the recipient should carefully consider the appropriateness of the advice in light of their financial circumstances and should carefully review the Product Disclosure Statement (if applicable) of the relevant financial product. The trading of derivatives and foreign exchange including margin foreign exchange and contracts for difference over foreign exchange is highly risky and may result in significant losses. These products are not suitable for all investors or traders.
Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" – Warning this story contains unashamedly positive feedback on the service provided.
