Euro, Pound Pulling Back to Next Long Setup. Yen Still in Short
Technically we are still in long setups. We are pulling back to the next long, ready for the next leg. Hard to say otherwise until we break below these levels.
Euro: The next extension long is at 1.3808. The line in the sand is 1.3696. A move below here may indicate a larger pull back. The target on the new long is 1.4503.
On the 15 min chart, we are in measured moves short. The euro reacted off it short (third measured move) at 1.3901, with a target at 1.3821. We are below the daily pivot at 1.3963, which may keep pressure on the shorts. At the moment S1 at 1.3842 is holding the market.
Pound: Hit its target on the daily chart and is now pulling back into its next long setup. The next traditional long setup is at 1.5976, with target at 1.646. Extension long is at 1.6, with 61.8% at 1.6053. If this breaks it can indicate it will pullback to its traditional long at 1.5976.
On 15min chart, between short at 1.6163 and long at 1.6079. Daily Pivot at 1.615 may place downwards pressure. Need to breakout either way to confirm direction.
Yen: Still in a short setup. Reacting off its next extension short at 81.49, with a target at 79.56.
Forex Trading analysis written by Diana Rochford for Forexpros.
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