EUR USD Traders Waiting for Tests of Value Zones

The EUR USD is trading lower overnight. Based onthe daily chart, this market has been having trouble regaining the bullish sideof an uptrending Gann angle from the 1.1876 bottom.

The EUR USD is trading lower overnight. Based on the dailychart, this market has been having trouble regaining the bullish side of anuptrending Gann angle from the 1.1876 bottom. This angle comes in at 1.2936today. The market will remain in a weak state unless this angle can beregained. Downtrending Gann angle resistance is at 1.2974.

The main trend on the daily chart is down. This trend turnedlower when the market crossed the swing bottom at 1.3119 several days ago. Anew main bottom has been formed at 1.2732, creating a new range at 1.3334 to1.2732. We are trading inside of this short-term range right now.

The way I see it, we are in the middle of nowhere at thistime. Based on the major range of 1.1876 to 1.3334, the best value area for apossible buy is 1.2605 to 1.2433. From aseller’s perspective, the best area to initiate new shorts is in theretracement range of the 1.3334 to 1.2732 range at 1.3033 to 1.3104.

This being said the best way to play the Euro is to look forthe acceleration points or logical prices for stop placement. On the upside,watch for a possible breakout above the Gann angle at 1.2936. A move above thisprice could trigger an acceleration to the retracement zone at 1.3033 to1.3104.

Based on the current pattern, the market has yet to form asecondary lower top. The first sell-off turned the main trend down but thismove was most likely longs bailing out. This means that fresh shorts may bewaiting to enter the market if the price is right.

The buyers are looking for value and the opportunity to golong at a favorable price. From June to August the Euro rallied from 1.1876 to1.3334. The ideal spot for fresh buyers to be waiting is at the retracementzone at 1.2605 to 1.2433.

Until the market makes its move toward either of theseretracement zones, look for choppy sideways action. If you feel the need totrade, the look for acceleration area and go the way of the move until themomentum slows down. This is likely to occur when either a big buyer or bigseller shows up inside the retracement zones.