FX Times: Daily Technical Update EUR/USD Stalking Gartley

[cmsfx]

Via FX Times
Fan Yang \ 12:33 PM EST \ December 14th, 2009

EUR/USD in Minor correction


* 4H: The EUR/USD has a short-term support at 1.4600, though its intermediate term projection is the 1.4000 area . There may be a short-term correction rally during the rest of the US session today. If the correction stops before breaking apex of the triangle pattern conservatively at 1.4730, we may have further decline to the 1.4000 area.
* 1H: In the near-term, if the market rallies towards the 1.4730 area, it is devleping an “abcd” retracement, or gartley pattern. This is the area between 61.8% and 78.6% retracement of the last downswing. Using 3 ATRs, a stop-loss may be defined at 1.4815. With a swing projection to 1.4520, this setup has a reward to risk ratio of about 1.56. This is also based on an anticipated level for the trigger to be about 1.4700.
* A near-term support broken after topping action at the 1.4730 area could be a trigger. The parabolic SAR may be a type of re-entry trigger. Another trigger could be a bearish move to break below 1.4680 after testing 1.4730 area as resistance.



Fan Yang
Currency Analyst
Commodity Trading Advisor

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