1 week chart

The EURUSD spent the week within a tight 180 pip range.  The cross wandered lower all week until catching a bid Friday in New York.  The cause of this short squeeze is up in the air.  Traders may just be pulling their bets after Chinese data came in weak but not as weak as expected.  Future rate cuts from the worlds most populus country may already be worked into the number.

4 HR Chart

Looking at the pair on a smaller scale, it is apparent that the cross broke above the descending trend line that has pushed the pair lower over the last month.  A strong 4hr Close above this level could indicate a buy signal heading into next week depending on the open Sunday.  To start the week support will be the descending trend line around 1.2210.  Any back test of this level could find buyers.  Strong daily resistance begins at 1.2330.

Sup                    1.2210

Res                    1.2330

Plan: Above the descending trend line at the Asian open Sunday could represent a nice RR buying opportunity.

 

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