Quote:
Originally Posted by Abou-Eddie  You could have made the same argument when it crossed the 1.50 and the 1.40 levels. These are psychological levels which will always bring in buyers which creates a short term stubbornness and price levels hover around there until the resistance is broken and then you see quicker movements. In this case I would give it more a range of 1.28 to 1.32 and when the resistance breaks you will see the 1.23/1.25 levels very quick. |
Usually buyers emerge as you mentioned at the psychological levels 1.30 , 1.40 ... . however in this move the buying emerged at 1.27 which is quite far from the 1.30 level , in addition this level of 1.27 doesnt coincide with any trend line or resistance or fib retracement to justify such a powerful bounce up of 200 pips , this is what made me suspicious that a Euro bounce might occur if the USD doesnt close below the 1.30 level by the end of the week.