EUR/USD Trade Hanging In There As Most Pairs Continue Dull Price Action (Updates: @BGareiss_GFT)

Wednesday, July 11, 2012, 5:54 PM

July 11, 2012

CURRENCYCURRENT BIASPOTENTIAL STRATEGY
EUR/USD (Medium Term)
Bought EUR/USD at 1.2467. Stop at 1.2064. Profit target at 1.3016.
GBP/USD (Medium Term)
Watch for a new opportunity to emerge.
USD/JPY (Medium Term)
Watch for a new opportunity to emerge.
USD/CHF (Medium Term)
Watch for a new opportunity to emerge.
USD/CAD (Medium Term)
Watch for a larger pullback now that point Z has been broken.
AUD/USD (Medium Term)
Watch for a new opportunity to go long near the bullish trend line.
NZD/USD (Medium Term)
Watch to see which confirmed trend line holds and which one breaks.
EUR/USD (Swing Forecast)
Potential Strategy
Bought EUR/USD at 1.2467. Stop at 1.2064. Profit target at 1.3016.
What is the trend?Up
What is this pattern?Bullish Gartley - See all chart patterns
Why is this significant?Multiple levels of support converged near our buy entry at 1.2476.
What other indicators or Fib Levels support this thesis?N/A
Reason for Strategy

We have been watching a general version of the pattern on the EUR/USD Weekly Chart for a long time. The pair has finally dropped all the way to long term support at 1.2467. Three levels of support converge near this area: 78.6% of 01, 161.8% of AB, and 1A=BC.

Although the trade idea has already entered, it is still possible to enter at this point if the pair drops back to 1.2467.

Trade Invalidation
N/A
Support & Resistance Levels
Resistance 3N/AN/A
Resistance 2Bearish trend lineSee Daily Chart
Resistance 11.301638.2% of BC (estimated until point C definitively establishes itself)
Current Price1.2235
Support 11.2467Strong support on the Weekly Chart
Support 21.1876Point 0 on the Weekly Chart
Support 3N/AN/A

Weekly Chart - Bought EUR/USD at 1.2467.
Daily Chart - 1.3000 support has broken; bearish trend line becomes focus if the pair rallies.
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