EUR/USD Signal- Dec. 23, 2013



EUR/USD Signal Update

Thursday’s signal was not triggered and expired.

Today’s EUR/USD Signals

No signal is given for today.

EUR/USD Analysis

No important news is expected today for either the EUR or the USD. As this is the week of the Christmas holidays, the market should be expected to be very thin and flat today and tomorrow.

As expected, following Wednesday’s bearish outside daily candle, the price fell to the next major support level of 1.3650, which produced a bounce up but eventually gave way. Subsequently the price almost reached the next major support level of 1.3618, rising sharply from a low of 1.3624 near the confluence of the major bullish trend line and the lower trend lines of the bearish channel. This produced a marked rise on Friday’s session to the minor resistance level of 1.3708. The price is still “behaving” technically, as can be seen from the chart below:

EURUSD Signal 122313

I agree with Christopher Lewis’ analysis today suggesting that if you are determined to trade this pair, play it small, and look for longs at around 1.3600. I would go further and suggest a touch of 1.3618 should be the catalyst for a long trade, but I am not giving it as a signal.

The daily pivot at 1.3670 could be a good target. The resistance at 1.3708 is interesting as it had been apparent as an S/R line previously but I did not give a lot of weight to it. It was a major low on 13th December and held to the exact pip on Friday, so in a market like today which is likely to be very quiet, it could become a useful level again.

Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment.