EUR USD Holding Retracement Zone Support

The EUR USD has made a successful test of the low of the day and is currently holding above retracement zone support.

The EUR USD has made a successful test of the low of the day and is currently holding above retracement zone support at 1.4696.

Traders should watch for a potential short-covering rally late in the session as trading conditions are oversold at this time.

This currency pair is currently in a position to form a weekly closing price reversal at this time.  This is a potentially bearish longer-term formation.

Oversold conditions could set up a strong short-covering rally to set up a secondary lower top before another break begins.  This means that short traders should be watching for a quick rally over the next two days.  Watch the order flow and take protection if necessary.

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

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