February 14, 2011 – EUR/USD to Form a Gartley Near 1.34
Simple Moving Average(SMA) 50-period (red), 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Intraday pivots and Intermediate-term support and resistance
Multiple Time-frame Analysis
EUR/USD at the Neckline (2/11)
– The EUR/USD cracked below the neckline of a head and shoulder at the 1.35 support.
– The 4H RSI broke below 30.
– However, if the decline extends to 1.3985 area, we would have completed a Gartley, a retracement pattern.
– Therefore, we should look out for support here, as it is also a fibonacci cluster of 78.6% and 50%.
– The RSI would be oversold, so in the near-term we can expect some rally from 1.34.
– Then, if the market develops a failed rally, a decline that breaks lower than the 1.34 area targets 1.3450, the base of the rising wedge and 61.8% retracement of the entire swing from Jan.7.
Will there be a rally from the 1.34 area? We would love for you to share.
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Fan Yang CMT
Chief Technical Strategist