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21 Jun 2013
EUR/USD building s/t reversal pattern thru HH, HL
FXstreet.com (Barcelona) - After averaging falls of 100+pips for the last 2 days, the EUR/USD found some bids below 1.3180 support at 1.3160, recovering its bid tone to currently stay at 1.3240, highest since last European morning.
Short-term bullish transition?
After having a failed breakout at 1.3180 support - June 10 low - the EUR/USD has produced a bullish reversal structure by printing higher highs and higher lows intraday - see 30m/1h chart -, thus enhancing the odds of a short term corrective extension towards 1.3280-1.33, area where an imbalance in favor of sellers is still observed, refer to today's supply/demand report for further details.
If/when the EUR/USD reaches 1.3280-1.33 vicinity - also 61.8% fib retrac 1.3410.1.3160 decline -, watch for price action behaviour to provide further clues. A break higher sees more ground possibly being gained, all within the context of a new bear cycle developing unless 1.3380-1.34 is retaken.
Don't lose sight of the downside potential
For new buyers to be discouraged, 1.3180-90 support should be taken out again. If that is the case, in view of Valeria Bednrik, Chief Analyst at FXstreet.com, "a break below 1.3060 low would point for a slide towards 1.3100 over upcoming Asian session."
Short-term bullish transition?
After having a failed breakout at 1.3180 support - June 10 low - the EUR/USD has produced a bullish reversal structure by printing higher highs and higher lows intraday - see 30m/1h chart -, thus enhancing the odds of a short term corrective extension towards 1.3280-1.33, area where an imbalance in favor of sellers is still observed, refer to today's supply/demand report for further details.
If/when the EUR/USD reaches 1.3280-1.33 vicinity - also 61.8% fib retrac 1.3410.1.3160 decline -, watch for price action behaviour to provide further clues. A break higher sees more ground possibly being gained, all within the context of a new bear cycle developing unless 1.3380-1.34 is retaken.
Don't lose sight of the downside potential
For new buyers to be discouraged, 1.3180-90 support should be taken out again. If that is the case, in view of Valeria Bednrik, Chief Analyst at FXstreet.com, "a break below 1.3060 low would point for a slide towards 1.3100 over upcoming Asian session."