At the time of last week's analysis the EUR/USD was trading at 1.27188. Our bias called for the EUR/USD to trade within a choppy (sideways) market with a potential rally up to the bullish target zones of 1.31448 - 1.31721 & 1.32419 - 1.32711.
(prHWY.com) January 17, 2012 - Brooklyn, NY -- EUR/USD: Short term bearish momentum
Weekly Insight
(analysis by Al "Gunny" Davis)
EUR/USD: Short term bearish momentum
REVIEW
At the time of last week's analysis the EUR/USD was trading at 1.27188. Our bias called for the EUR/USD to trade within a choppy (sideways) market with a potential rally up to the bullish target zones of 1.31448 - 1.31721 & 1.32419 - 1.32711 and then a subsequent decline towards the bearish target zone of 1.27830 - 1.26630. Our exit strategy called for a rally that would trade up to the target zone of 1.34568 - 1.34683. The EUR/USD declined to a low of 1.26241 on 1/13/12 and closed the week at 1.26754. In our timing analysis we were looking for a turning point between 1/10/12 - 1/11/12.
ANALYSIS
Our long term price analysis still remains bullish as the waves appear to be unfolding in a larger degree 5-wave corrective pattern. We're anticipating a long term rally that will trade towards and potentially beyond the target zone of 1.57770 - 1.60380. The current decline of the EUR/USD is supported by the bearish momentum on the lower timeframes. Our bias calls for the EUR/USD to continue its decline down to the target zone of 1.25070 - 1.23897. There's a tremendous amount of confluence at the target zone of 1.24770 - 1.24170 and I'll be observing how the EUR/USD reacts there. Our exit strategy calls for a rally that will retest the upper boundary of target zone 1.26630 - 1.27830. A close & retest that stays above this zone will open the way for a rally towards the target zones of 1.29370 - 1.29770 and 1.31363 - 1.32366.
Our long term momentum indicators signal the EUR/USD's bearish momentum may be coming to an end. The lower timeframe's momentum indicators are still bearish and I'll be using them to signal the start of a rally that could last for several weeks.
TIMING
Our long term timing projections allow us to anticipate a potential significant swing point may occur between 3/4/12 & 3/18/12. Our short term timing projections allow us to anticipate a minor swing point may occur between 1/16/12 - 1/19/12 and also between 1/24/12 - 1/26/12. Our timing projections allow us to anticipate potential turning points in the marketplace. With our timing projections there's a factor of +/- 2.
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