EUR/USD Mid-Session Analysis for October 1, 2012

Get Forex buy/sell signals directly to your email and by SMS.
To learn more click here

Early in the trading session, the EUR/USD broke through a recent swing bottom at 1.2828, turning the main trend to down. There was no follow-through to the downside, however, as the market reversed course to the upside after testing a major 50% price level.

From late August to Mid-September, the Euro rallied against the U.S. Dollar from 1.2465 to 1.3172. This range created a retracement zone at 1.2818 to 1.2735. The upper level of this range became support today, triggering the intraday reversal.

Daily EUR/USD Chart

Daily EUR/USD Chart

Although the main trend is down on the daily chart, the strong rally and close has the market in a position to turn the trend to up once again on a rally through the new swing top at 1.2959.

 

Traders shouldn’t expect too much of a rally initially however, since downtrending Gann angle resistance drops in at 1.2972 and another retracement zone at 1.2987 to 1.3031. Until these resistance areas are overcome, look for a choppy, two-sided trade. 

Want to read more articles like this one?
Enter your e-mail address and read FX Empire content directly from your inbox.
 
We value your privacy. Your e-mail address will not be shared.
About:FX Empire Analyst - James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.

  View all of FX Empire Analyst - James Hyerczyk's Articles    
Share Your Thoughts: Post a Comment


Your email address will not be published.