EURUSD Forecast for the week 20th January, 2014

EURUSD Forecast for the week 20th January, 2014 

Daily Chart

• After beginning the week a tad higher , we hit resistance around the 61.8% retrace and continued lower
• We have found temporary support at a 61.8% retrace from NOV low to Dec Highs,
• Price action shows very heavy pressure and looks like a potential to go lower 
• Stronger support is lower at around 1.345 which is a confluence of a fib extension of 127.20 (reverse calculation of most recent swing retrace) & a 161.8 fib ext (of the Dec highs swing down to first week of Jan) and Also which is a Mid Monthly pivot from S1 to S2.
• At this stage, trend traders would look for opportunity to short if Monday / Tuesday provides some retrace and Target 1.345 (As shown in 4 hourly Chart)

4 Hourly Chart

• A very good potential short setup if a retrace to the 38.2/50/61.8 fib level with confirming price action candles to follow the short to find lower lows

Hourly Chart

• Monday Asian session hourly candle had shown price action tried to break lower, but with another candle recovering (engulfing or a railway candlestick pattern) - this is showing market finding support at this current stage and wants to retrace higher before continuing down
• On my hourly chart, I have only shown possible counter trade levels

Outlook Trade opportunity

This week I have a few trade setups.

Trend following Trades -
1 - Please look at the 4h Chart and Daily Chart

Counter Trend Trades
2 x Trade levels on the 1H Chart

Tips -

Always take note of any economical news event on our provided calender below