EURUSD – Resting at Half-Way Point of YTD 2000+ Pip Range

EURUSD’s sell off into the 1.3800’s zone today saw price pull back for the first time in 2011 to a daily 50% retracement level, at 1.3906.

·         What lies beneath? – 1.3660’s is 61.8% retracement of YTD range, but before that there is a 1.3750 low from March-2011.

·         What lies above? The 1.4260’s is the gap fill level from last week, basically this is the zone near the post-NFP lows on EURUSD

When is a good time to look for a bounce? Look for an Up Day on daily time frame. Notice that when EURUSD in 2011 has been selling off or pulling back in a sequence of seller days (red bars in chart below), that once that sequence is interrupted by an up-day (blue bars in chart below) then the following days often show a pattern of bouncing upward. That pattern is called “go with the flow” J  

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