Euro Expected to React at 1.2945

EUR USD day-traders have their first big read at 1.2945.

EUR USD day-traders have their first big read at 1.2945.  This price marks a Fibonacci retracement of the 1.2456 to 1.3737 range.  A test of this level could trigger a short-covering rally.

The first test of this level is likely to attract profit-taking.  Counter-trend buyers may also step in at 1.2945.  Short-term traders will have to decide whether to pull in their short-positions and play for the retracement or leave the position alone for a breakout to the downside.

Either way this is not a good area to initiate new selling.  Watch for a momentum shift as the market approaches this area.

James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor. Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis. His firm, J.A.H. Research and Trading publishes The Forex Pattern Price Time Report... More