The EURUSD is correcting early NY trade

• gregmikefx
• January 21st, 2010

The EURUSD has moved up sharply in early NY trade after selling off to the lowest level since July 2009 in the London trade. That move lower reached a target of 1.4045 and actually moved through that level to a low of 1.4029 in the London session.  As NY entered, however, the price has rebounded back above our 1.4045 target level and took off to the topside.

The pair is pausing at the 100 bar/200 bar Moving average levels on the 5 minute chart – moving above the 100 but so far remaining below the confirming 200 bar MA level at the 1.4090 level (green line in the chart above).  The 100 bar MA level is currently at 1.4078 and will dictate the short term bullish or bearish bias.  Above is bullish, below is bearish.

A break of the 2 moving average levels should confirm the upside and we will be looking for continuation momentum up to the 1.41117 level. This is the 38.2% retracement level of the 2009 low to high trading range (see chart below). The level also held a corrective move higher today before moving to the downside (see chart above)

On the downside, the 1.4067 level was a low from earlier today. Look for support against this yellow area today (see chart below). If it can hold corrections, the topside corrective push should continue.

Tickers: $EURUSD

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