EURUSD In Position to Shift Weekly Trend
The Fibonacci .618 couldn’t do it, the Gann .625 either, but the old school Dow Theory 66% may be able to cap the 7-month rally in EURUSD. Following last week’s doji and the indecision it reflects, and this week’s pull-back which is threatening to change the direction on the weekly chart, tomorrow’s price action following the U.S. non-farm payroll number becomes all the more important. The 145-00 level should prove plenty pivotal with a close below that point defining the weekly trend going forward. What’s significant about Dow Theory is that it leaves room for a retracement of up to 66% before a primary trend is compromised.
AUDUSD’s price action raised eyebrow’s today with a key reversal on the daily chart which left this market, the leader of the anti-Greenback crowd, in a position to challenge its current 7-month up-trend. A close below approx 85.90 would be needed to change the current direction on the Weekly chart to lower.
Jay Norris
jnorris@brewerinvestmentgroup.com
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