Daily EUR/USD Chart

EUR/USD Mid-Session Analysis for March 25, 2013

Daily Chart

Daily EUR/USD Chart
Daily EUR/USD Chart

After taking out a series of downtrending Gann angles that had been holding down the market for several weeks, the EUR/USD broke sharply back to the bearish side of the angles. This is a strong indication that this morning’s rally was triggered by short-covering rather than new buying.

The move also put the market on the strong side of a retracement zone, but the move through the Fibonacci level at 1.3023 failed to attract any fresh buyers. The subsequent sell-off triggered a break through the 50% level at 1.2989, indicating further weakness.

Today’s reversal to the downside on strong momentum is a sign that short-sellers are still in control of the markets. Based on its position at the mid-session, there may be enough downside pressure to push the market through last week’s low at 1.2843.

Despite today’s attempted breakout to the upside, the main trend remains down. The main trend will turn up on a trade through 1.3134. If the market continues to break for 2 more days then the new change in trend level will be 1.3047.

Hourly Chart

Hourly EUR/USD Chart
Hourly EUR/USD Chart

The main trend is down on the 60-minute chart. The main trend turned down when the swing bottom at 1.2983 was violated. The main trend will turn up when 1.3019 is taken out with conviction.

Although the main trend is down, oversold conditions could trigger an intraday short-covering rally. The best signal to watch for is a closing price reversal bottom.

The charts indicate that 1.2843 is a potential downside target. This hour, the best upside target is 1.2957. 

Published by

James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.

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