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Bearish in EURUSD but only selling into rallies


PIA_First_IC

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USD INDEX- The index has stalled at the 161.8% extension level of 90.25 (from 88.26-89.49). Although the med-term bias remains bullish for the US dollar, some currency majors are highlighting scope for a deeper correction. Bespoke support is seen at 89.94. If we see a break of this area then further support is seen at 89.61, a possible right shoulder of a bullish reverse Head and Shoulders formation. We look for the deeper correction to buy into.

usd index ig.png

 

For this reason, we look for an upside correction to sell into EURUSD this week.

 

Monthly: In a large corrective channel formation. The trend of lower lows in seen at 1.2670. We have stalled and pulled back from the 38.2% pullback level of 1.2517 (from 1.6038-1.0341)

eurusd m ig.png 

 

Weekly:  A possible Ending Wedge formation. Trend line support is seen at 1.1978. The previous swing low is seen at 1.1553. With bespoke support at 1.1593, we expect a ‘bounce’ higher from this solid support area.

eurusd w ig.png

 

Daily: Stalled in front of the 261.8% extension level of 1.2620(from 1.1551-1.1959). The move higher can bee seen in 5 waves (Elliott Wave). With bespoke support located at 1.2123, our risk/reward would be poor to sell from current levels.

eurusd d ig.png

 

Intraday (four-hours) – We have stalled at the 161.1% extension level of 1.2212 (from 1.2539-1.2337). The intraday chart (1 hour) posts a DeMark exhaustion 13. Often the indication of a change in the current trend. For these reasons, we look to sell into rallies.

Bespoke resistance is seen at 1.2330-40. This area has been pivotal (swing high from 17th January 1.2324 / swing low from the 30th January at 1.2337).

eurusd 4 ig.png

In regards to the PIA analysis, no representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result.

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    • This is not an acceptable explanation for me unfortunately, I am fully aware of the need to move spreads and I had accounted for that. Especially at the open of a market, but your spread was totally unreasonable the spread on DEC contracts is already at 130pip standard, to increase it to 400pips and hold it there even after 5 mins of trading. As my execution was a 09:06 the main market volatility had already been accounted for.   So disappointing after 6years being a customer and on a profitable trade as well: 
    • Dear @MB1470, Thank you for your post. Please note that dealing spreads on shares are subject to variation, especially in volatile market conditions or other unusual circumstances.  Market spreads can widen significantly, particularly at the beginning and end of the trading day, and minimum spreads may exist. Thanks, KoketsoIG
    • This morning at the market open on NOVO DEC contracts. On Spread Bet.    the spread moved from 138pips to close to 400 pips? How can this be reasonable the candle is only displayed on a 15-2min time period not on smaller periods. At market open 09:00 ????? How is this even remotely reasonable?     
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