Research: Eur/usd - Trading Strategy, Trigger Points, and Support and Resistance Levels
RBS has given the following trading strategy, trigger points, and support and resistance levels:
TRADING STRATEGY: Longer term longs; stop below the neckline at 1.3650 target 1.4099 onto 1.4200 (spot 1.3778)
1.3873 - where the market looked toppy around the middle of September and where the 61.8% retracement falls from the previous range.
1.4099 - My (analyst) initial objective from this pattern and the 38.2% of this new found range from the retracements
1.3907 - a 50% retracement from the rally at the beginning of the year at 1.2874 to the high at 1.4940.
SUPPORT LEVELS: 1.3799, 1.3700
RESISTANCE LEVELS: 1.3907, 1.4099
-A strong close to the week, given that risk sentiment tends to suffer a sudden bout of fear as the weekly close nears, this didn't happen last Friday and the EUR closed up near the highs. The dominant technical feature is the inverse head and shoulders pattern with a target up at 1.4099 possibly 1.4200 with a stop currently positioned at 1.3650 – this can be moved up to 1.3750 if required.
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