EUR/USD Short Term Top- Selling Opportunity at Market Open?

By: Joe_Gelet

EUR/USD could retrace to 1.4190 based on the following factors:

• RSI on hourly above 70
• Intrepidus FX Sell Signal
• EUR/USD is up based on technical break of the hourly channel (see chart 1 below)
• Profit taking on EUR/USD longs
• 1.43 is an established daily high since may (see chart 2)
• Same logic applies on USD/CHF Long

What could cause it to go higher?

• A continued selling off of the USD

Daily EUR/USD with established high near 1.4335

* EUR/USD back and forth price action was not impressive until the better than expected US GDP release was met by a negative equity reaction which sent EUR under 1.41. After digesting the data, which included benchmark revisions, equities took back losses and EUR bounced. The advance accelerated into the 16:00bst month end fix as EUR reached 1.4180. When USD bids nowhere to be found in thin post fixing activity EUR/USD extended to 1.4279 before it ran out of steam.

This is not a recommendation to sell EUR/USD.  It means that when the market opens if EUR/USD fails to break through the high, selling could continue to fibo levels and hourly trendline.  If EUR/USD breaks the 1.4279 high, expect it to go much higher initially.
There is a lot of fundamental pressure short USD at the moment, so if this is not a short term top, expect the EUR to explode.

By Joe Gelet

http://eliteeservices.net/ Elite E Services FX Systems   See more articles at www.eliteforexblog.com

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