Regarding EURUSD, today’s recommendation:

– Buy the EURUSD on pullbacks at ~1.304 with SL=1.2990 and targets 1.31/1.317/1.335.
– VERY RISKY: Buy the EURUSD at 1.3085 with SL 1.3070 (breakout of the asian session range), target above 1.31.

The market is mixed again this morning. Spanish bonds are still going down suggesting that the market should continue to rally in EURUSD. On the other hand, several news have brought bearishness to the market. The EU summit does not seem to be EURUSD supportive since it is only highlighting new divisions within the block. From a technical point of view, we don’t have any clear pattern (may be a double top). From a wave point of view, we are still in the final leg up of this relief rally that started around 1.20 and should bring us to 1.335/1.348. Today, the 100-hour MA is coming to provide support at around 1.3040 as well as a minor fibonacci 61.8% level (impulse from 1.289 to 1.313) and trend line support as shown on my graph. This could be an area for a long entry with SL below the psychological level of 1.30.

http://www.chifbaw.com/en/wp-content/uploads/2012/10/eurusd191012lo.gif

Yesterday was too booring for european session on EUR/USD. I would have had to open on EUR/JPY for short trade. I’m waiting for a new opportunity ;-). What did you do for this overnight ? As you say “TGIF” 😉