???URO update (Obama??s Next Term) – $EURUSD $6E_F $$ #forex

Yesterday´s action during the US session was pretty much a slow grind up.

2012-11-07_1048

I finished yesterday´s post with the following.

Although I´m keeping the options open in terms of the final direction (specially in presence of a loaded week in terms of political events), price is currently within a key area, which could provide some important support within the 1.5 month range, or alternatively, become the beginning of a new move.

Back on Sunday night, the following observation was posted.

So far, price as the bottom of a 400 pip range 1.2750´s-1.3175´s – Unless a see an important, steady and rapid buyer´s response, or prices find a choppy -although firm- footing in this area,  I´ll be leaning towards lower prices.

Both observations were partially right and partially wrong. Right in the sense that the slow and steady chop took the price off yesterday´s minimum @ 1.2766. Wrong because the move that developed afterwards, took it to new lows @1.2736

As noted on the chart below, the euro is currently trading at a critical swing area (noted with yellow lines) 1.2800-1.2750

2012-11-07_1050
 What I´ll be looking for? First, important to point the rejection of higher prices at 1.2880, which (not coincidentally) is a POC -marked with pink line- in which the current retracement originated. Specifically, I´m taking into account the vertical development to the downside experienced at the end of last week.

Although currently overextended, I would like to see a clear break of 1.2770 to look -at least- for a move into higher areas of value. As noted 1.2780 & 12800 are key POC. I would expected those to be tested, provided price action continues tot he upside. However, I am still leaning towards some more downside momentum, buyer´s expected to act within 1.2718-1.2662. Particularly, I´m keying in 1.2633
2012-11-07_11402012-11-07_1141

 

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