Tanalys

EUR/USD Resistance Extends to 1.2948; Bearish Below 1.3028

4Hour

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: Bigger picture, a EURUSD head and shoulders top would be confirmed on a drop below 1.2743. Only above 1.3028 would suggest something bigger on the upside. I wrote Monday to “expect resistance from 1.2910 to 1.2934. The former is the underside of the broken downward sloping channel. The latter is the 4/4 reversal day close and 61.8% retracement of the rally from 1.2744.” 1.2934 has held so far but a final push into Elliott channel resistance (dashed line) and specifically 1.2948 (where the rally from the low would consist of 2 equal legs) isn’t out of the question before a run at 1.2744/96.

FOREX Trading Strategy: With the rally into 1.3028, reward/risk is favorable against 1.3028 for a run at 1.2796 and maybe 1.2744. Be careful about pressing the short side below 1.2796 however…a drop to there could complete 5 waves down from 1.3242. This is why the target is for listed as below 1.2796.

LEVELS: 1.2744 1.2795 1.2833 1.2934 1.29881.3028

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