Tanalys

EUR/USD Reverses Sharply in Second Largest Range of Year

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Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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-“It is possible that an ending diagonal is underway from the November low. If that plays out, then the market will trade above 1.3966 (and most likely above 1.4000) before topping.” While there are other wave structure possibilities, today’s action certainly ‘fits’ with how ending diagonals often resolve. That is, the reversal is sudden and sharp.

One could see a bounce from near the NFP low (1.3811). 1.3908 is now resistance. Of note is the fact that USDCHF failed to drop to a new low (divergence).

LEVELS: 1.3753 1.37731.3811 | 1.3882 1.3908 1.3951

–Trading specifics (setups with entries, stops, targets) are availabletoJ.S. Trade Desk members.

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