International Trading


EUR/USD – Stalking Correction; Zig Zag Scenario

• Day and 4H: The EUR/USD is seen going to 1.39 (61.8% retracement) or higher to 1.41 (swing projection).
• However, as the market hits a channel resistance, the market is slowing down and starts this week declining.
• In the daily chart, if today’s price action can close below 1.36, there is a clear reversal signal for a more significant correction.
• The 4H chart shows the market in an upwards channel. A break out below the channel with a strong bearish candle also signals a more significant correction.
• A correction can be seen to be supported near 1.3360. This is at 38.2% retracement. The 1.33 level is also an important support area for a bullish trend.
• If the market does indeed break out of the channel, I am going to be stalking the correction for a stronger zig zag type of correction.

• 1H: The EUR/USD could be in a zig zag. We can stalk the correction both in terms of developing waves and with anticipated support first at 1.35 and then the 1.3360/1.33 area.
• The RSI reading in the 1H chart has stayed above 40 since breaking out of the 1.26/1.29 sideways channel.
• If  the reading breaks below 30, it is likely that the market is reaching to the 1.33 area.
• Then remember though, the market is seen to head higher towards the zone between 1.39 and 1.41.
• After such a sharp rally since 1.26/1.27, the market is due for a correction. This may be the week.