EUR/USD Weekly Forex Signal - 12 January 2015

John Ursus

By: John Ursus

Timeframe: W1

Recommendation: Long Position

Entry Zone: 1.1750 – 1.1850

Take Profit Zone: 1.3000 – 1.3100

Stop Loss Zone: 1.1550 – 1.1600

The EURUSD has been in a freefall as multiple bearish factors have resulted in an increase of the selling pressure. The EURUSD recorded a nine-year low and broke down below a crucial support level from July 22nd 2012 before slightly rebounding. The correction took this currency pair from an intra-day high of 1.3993 to an intra-day low of 1.1754. The EURUSD is trading in extreme oversold conditions from where this currency pair could face a short-covering rally.

The sell-off took the EURUSD well below its 38.2 Fibonacci Retracement Fan, but the move ran out strength after the breakdown below its July 22nd 2012 low occurred which could signal a short-covering rally in the EURUSD back into its 38.2 Fibonacci Fan from where more upside is possible. Forex traders are advised to spread their entries over a 100 pips range between 1.1750 and 1.1850. The downward potential appears to be rather limited while the upside potential remains very attractive.

EURUSD Weekly 11215

About the Author
John Ursus
Professional trader and technical analyst with over one decade of experience. John believes that being a successful trader means you have to be in the minority and defy what is popular. Trading is an art form and not science and there are more myths about trading than there are successful traders.
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