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EURJPY Hits Target 1- EURUSD Hits Targets 1&2

Market Analysis
2016-10-21_14-10-11

EURJPY, Daily               

On Monday (October 17) I wrote “A number of the EUR pairs look like they may be rolling over, one with the most potential could be the EURJPY. The pair had a good run up from the September low around 112.00 to a recent high at 116.30.  The pair retraced to the 23.6 and 38.2 Fibonacci levels last week as the 20 & 50 DMA and the 50.0 Fibonacci levels provide support around 114.00-114.12.  A breach and break of this level will could see a fall to Target 1 at 113.00 and Target 2 at 112.00, both psychological round numbers and multiples of the 14 day ATR which is currently 107. This move would be in line with the longer term Weekly and Monthly time frames”

The trade was triggered on Tuesday (October 18) and following the ECB rate announcement and press conference yesterday, Target 1 (113.00) was reached earlier today for a net gain of 112 pips.

2016-10-21_14-34-01

The EURUSD SHORT position had been open from last week (October 12) when I wrote “EURUSD’s technical picture remains one of bearish momentum. The pair has broken back below, and posted two daily closes below, the 200-day moving average, which is presently sitting at 1.1172. The clear break of the 200 DMA, which was confirmed yesterday, generated a SHORT position this morning at 1.1035. The next downside targets are Target 1 1.0950, the recent July Low and Target 2 1.0917 the June low.”  Both Target 1 and Target 2 have been achieved in the last 24 hours as the pair broke the key 1.09500 level for a net gain of 118 pips. The next support area is the March low at 1.0824.

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Stuart Cowell

Market Analyst

HotForex

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