On Friday last week, I analyzed (the daily chart) that more sell off would be confirmed on EU only if it closes below 2500 or the 2440 price level. Eventually, EU couldn’t close below it. Also, over the weekend EU reacted to a bailout news development from Spain. This will have one of 2 effects: 1. It could be the beginning of a Bullish Trend or 2. A calm before the big storm on EU.
Technically, EU has been making HHs and HLs right from the 2287 low on the 1hr and 4hr TFs.
Today’s trading bias – EU is currently trading between the 2650 psycho PP and the 2610 minor support. It’s also currently sitting above the 2622 price (Friday’s high, which is also a PP on its own). This range is enough to make a trading bias for today. If we have a close above 2650 coupled with a buy PA, our first target is 2690. If 2690 is broken (i.e. if it doesn’t turn to a resistance) then the next target is 2722.
The second scenario is for 2610 to be broken down. Pls note that 2610–2600 is a strong support region. If it can’t be broken, it will also make a good buy entry point. If it gets broken eventually, our targets would 2555 and then 2487 next and this will ascertain the filling of the gap as most traders would be expecting.
More updates on this analysis @ ‘Plan B Forex Group’ on FB and you can also ask your questions right over there…Happy new trading week to everyone