EUR/USD Fibonacci Analysis; Trade Idea Buy at 1.4908
November 23, 2009 - 5:20 pm by Juan P. Bejarano · 6 Comments
EUR/USD extended gains in the NY session, in tandem with higher equity markets, as sales of U.S. existing homes increased more than expected and investors speculate interest rates in the U.S. will be kept at record lows for an “extended period”.
EUR/USD reached an intraday high at 1.4999 before retracing slightly towards 1.4950.
Taken this high as a possible near term top, we find Fibonacci resistance levels at 1.4941 (38.20%), followed by 1.4924 (50.0%), 1.4908 (61.80%), and 1.4884 (78.6%).
From the strong upward move, demand is likely to be found between the 50.0% and the 61.8% Fibs.
The pair looks to be supported above the 1.4900 level, with further risk appetite likely pushing the pair towards 1.5050 area.
A break above NY session’s low would open next target at 1.5016.
Above this level, EUR/USD will find subsequent resistance at 1.5051 and 1.5100.
Trading levels in play:
Order placed early in the morning is still valid.
Limit Buy @ 1.4908 Targets: T1 1.4928 – T2 1.5030 Risk: 1.4840
* After 15 pips profit move stop to entry, take profit at will. Trade is canceled if it rebounds near entry and moves higher by 20 pips. Comments will follow if outlook changes.
DISCLAMER: The above post is for information only. Before making your investment decisions please acknowledge that the information provided herein should not be taken without your own individual assessment and extensive investigation, it should not be preempted as your own trading strategies, investment advice and/or trading portfolio.
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Missed that trade but that was spot on.
Hi Steven,
Thank you.
Although the pair may head higher from here, we decided to lock in the rest early due to heightened risk aversion. Markets should see an exiting day with US GDP due later followed by the FED minutes.
Nice trade! but I moved the order to break even and left rest open…Im closing now the rest with 70 pips. Thanks for the entry Juan.
Hi Carl,
lol. Go figure… Very nice that you left the trade open and closed with more profit. Good decision!
We should have definitely left it open since gains were already locked in and rest was at break even. On to the next…