EURUSD saw another inside day just above holding support at 1.2742/38. Looks like we are forming a bear flag. This is just a correction higher before the
EUR/USD Daily Forecast - 21 October 2014EURUSD saw another inside day just above holding support at 1.2742/38. Looks like we are forming a bear flag. This is just a correction higher before the bear trend resumes. 1.2780 is key for today. Above here meets a selling opportunity at 1.2835/44 with stops above 1.2860. An unexpected break higher however meets last week’s high at 1.2885. A break higher this week is much more positive & then targets 1.2920/30. Any further gains present an excellent selling opportunity at 1.2960/70. A high for the correction is expected but shorts need stops above 1.2995.
Holding below 1.2780 adds pressure to target 1.2765 then support at 1.2735/25. Failure here however risks a slide to 1.2710/05 then short term trend line support at 1.2685/80. This is key. A break lower is expected eventually & below here today triggers the next leg of the bear trend. Losses could accelerate towards 1.2625/22 then 1.2605/00.
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