Weekly Forex Play February 26th

EURUSD-Feb-26-2012-395x239

EUR/USD Current Price: 1.3460
Daily High/Lows:

Fri Feb 24 1.3485/1.3366
Thu Feb 23 1.3377/1.3230
Wed Feb 22 1.3265/1.3210
Tue Feb 21 1.3292/1.3186

Pivots: S3: 1.3227; S2: 1.3305; S1: 1.3382; P: 1.3434; R1: 1.3511; R2: 1.3563; R3: 1.3614

EUR/USD: The theme of the price action last week included EURO strength and YEN weakness. During the week, the EUR/USD traded north from a low of 1.3153 on Monday, February 20th to a high of 1.3485 on Friday, February 24th for a total of 332 pips to the upside or 2.5%. The USD/JPY traded the week from a low of 79.36 made on February 20th to a high of 81.03 where it closed the week on February 24th for 2.1% gains. Yes, the Dollar lost ground against the Euro and gained ground against the Yen. That means that the EUR/JPY enjoyed the bigger move, as it rocketed from a low of 104.53 on Monday to a high of 109.07 on Friday for a 4.3% overall move. While the EUR/JPY has not shown any signs of topping yet, it is difficult to buy at these lofty heights without a correction. On the EUR/USD, having reached the 50% corrective target at 1.3436, the next level to look for is the 61.8% target at 1.3628. From the chart shown, this move is presumed to be part of a corrective pattern. Once this pattern completes, the EUR/USD should head down again. The equality target brings us to 1.3573, taking the distance of the first 600 pip swing move from 1.2627 to 1.3227 and projecting it from the beginning of the second swing move at 1.2973 on February 16, 2012. Therefore, there could be some profit taking between the equality target at 1.3573 and the next FIBO target at 1.3628. Watch support and resistance levels, including Fibonacci and Pivot Points for the coming week.

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