???URO – looking ahead – $EURUSD $6E_F

Last Tuesday´s post I pointed at 2 different scenarios:

The bearish case, provided important levels to be noted is the (key) support in the 1.2758-1.2810 range got broken, which never occurred.

The bullish view was marked by emphasis in 2 areas (as noted below) 1.2963-1.2983 & 1.2984-1.3000. ECB´s decision and a positive NFP provided fuel for a an important move that -literally- penetrated those areas in an, almost, effortless manner. The chart below shows how these areas were breached. I tend to pay special attention to vertical developments (as noted in the chart), because the tend to show a change of character in price action, specially when it breaches areas so easily.
2012-10-07_22502012-10-07_2245
Part of my methodology for charting consists on working with the profiles. The idea behind it, is being able to split, merge and combine them so I can get the most accurate information possible on regards to important areas of business.
Therefore, although what you are seeing on the chart below tends to represent weekly profiles, they do not always represent a complete week, since the main criteria has to do more with price action than time. Thus, the updated chart is shown below.
2012-10-07_2301
I signaled the importance of a vertical development on regards to price action. It  also important to point out that -according to what I have explained in previous posts- these type of areas are characterized for lack of complete price discovery, and are subject to be revisited at a later time. Therefore, i would not be surprised for the Euro to have a partial retracement towards the 1.2918-1.2894 (the symmetrical profile indicates another important area, as noted previously), followed by 1.2844-1.2880.
To the upside, 1.3080-1.3044 1.3092-1.3107 and, most importantly 1.3120-1.3182, area in which price was rejected back in mid-September.

 

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