[justinefx]

Welcome traders...


Weekly Trend direction:Bearish
Weekly trend reversal level: 1.3860
Strategy: Whilst below the weekly trend reversal level,sell rallies to resistance levelsafter an entry signal.
Medium term: The euro has broken above the large flag formation which has dominated the technical picture in 2006. Now, whilst above 1.2900 (1.2800 max), the euro remains in an uptrend which is heading back towards 1.3800, and possibly higher still, towards 1.4100.
Today's trade suggestion: Plunging towards support at 1.3630 (38.2% of the recent rally), the euro is very oversold and due a bounce. If a medium/long term top is in place at 1.3860 (the jury is still out on that idea) then we still expect a strong bounce to recover 61.8% - 78.6% of last week's fall. There is a good chance for a counter-trend trade at 1.3630, with long positions aimed at 1.3750, and even 1.3800 before new attempts at topping. Watch for rallies to that area this week, looking to sell into reversal signals if/when we get there.
Key G7 Resistance levels: 1.3700, 1.3750


PS: This is only a caslculation based on personal analysis. Please refer to our specific entry signals for exact entries and stops.