Will EURUSD breakout of the double top of 1.3300?

New low ahead for EURUSD???
January 9, 2013
Will 2013 be the year where gold breaks above 2000$?
January 12, 2013

On our last EURUSD update we made it clear that our favorite scenario is the one that support. In other words, we were supporting that a couple of I-II-i-ii had formed, expecting an upward spike as wave iii. The fact the lower degree wave ii was larger in time and scale as wave II, made us put some close by alert levels in order to protect our position. We mentioned that would not want prices to fall below 1.3015. On the other hand, we also noted that should not let their short positions uncovered if prices moved higher than 1.3095. As you can see in the following chart we proved correct in our bullish expectations.

eurusd

The big question now is if this upward move is strong enough to break 1.3300 which is a major resistance and the area where a was formed. Our view remains bullish as long as prices move upwards in an pattern. For some time now, we have posted that potential target of this entire upward movement can even be 1.3700. For that price level to be achieved, we must first of the 1.33 resistance. will however try to push prices lower as these levels are a good bet to sell short, as their stop (1.33) is very close by and their risk small if prices don’t overcome resistance. If you need help trading this forex pair, don’t hesitate to contact me.

As always, thank you for taking the time to read my thoughts.

A term used to describe a trader who is expects that a particular asset – be it a commodity, currency or product – to rise in value. The opposite of a ‘bear’.

The idea is that bulls attack by bending their heads and poking their opponents upwards with their horns, symbolising the fact that they are buyers, driving prices up.

Beliefs held by the aforementioned ‘bulls’ of the trading world, are described as bullish. Characterised by a generally optimistic outlook on the state of a given asset, a bullish outlook would suggest that a rise in value is imminent. Opposite of bearish.

A term used to describe a trader who is expects that a particular asset – be it a commodity, currency or product – to rise in value. The opposite of a ‘bear’.

The idea is that bulls attack by bending their heads and poking their opponents upwards with their horns, symbolising the fact that they are buyers, driving prices up.

Beliefs held by the aforementioned ‘bulls’ of the trading world, are described as bullish. Characterised by a generally optimistic outlook on the state of a given asset, a bullish outlook would suggest that a rise in value is imminent. Opposite of bearish.

A term used to describe a trader (bear) who is expects that a particular asset – be it a commodity, currency or product – to fall in value. The opposite of a ‘bull’.

The idea is that bears attack by getting up on their hind legs and striking their opponents down with their paws, symbolising the fact that they are sellers driving prices down.

Beliefs held by the aforementioned ‘bears’ of the trading world, are described as bearish. Characterised by a generally pessimistic outlook on the state of a given asset, a bearish outlook would suggest that a fall in value is imminent. Opposite of bullish.

doubletop

impulse-wave-rules

A price movement through an identified level of support or resistance, which is usually followed by heavy volume and increased volatility.

A term used to describe a trader (bear) who is expects that a particular asset – be it a commodity, currency or product – to fall in value. The opposite of a ‘bull’.

The idea is that bears attack by getting up on their hind legs and striking their opponents down with their paws, symbolising the fact that they are sellers driving prices down.

Beliefs held by the aforementioned ‘bears’ of the trading world, are described as bearish. Characterised by a generally pessimistic outlook on the state of a given asset, a bearish outlook would suggest that a fall in value is imminent. Opposite of bullish.

Alexandros Yfantis
Alexandros Yfantis
Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.