EUR / USD already makes two huge triangle formation in :
-May 28 : 1st reversal in level : 1.3787
-June 16 : 2nd reversal in level : 1.3743
-July 8 : 3rd reversal in level : 1.3831
After 3rd reversal the market trading on a start of a new uptrend that will lead into new highs toward 1.4296 and then entering bullish scenario with next target to 1.4363.
A break of the 1.4230 area will confirm that scenario. Entry point in 1.4230 is suggested considering its bullish scenario.
I placed Fibonacci 0.0 in level 1.3833 where huge reversal happened two times ; May 28 and July 8 . And place Fibonacci 100.0 in level 1.4296 equal level with July 16 HIGH and July 27 HIGH. Others Fibonacci levels will takes their positions as seen in my chart.
Recently prices have already traded up to 50 % retracement area above 1.4065 , breaking 61.8% Fibonacci level at 1.4115 and entering its new trading range between 1.4115 – 1.4296 . But still below 1.4265 the key level to reach 1.4296.
Since the market not powerful enough to break 1.4265 and not reach the target in 1.4296 Fibonacci 100 yet , the market will still trading below 1.4265 to looking for a strong turning point. Market will stay in sideways with trading range around 1.4115 – 1.4265 with 1.4215 as key level inside this sideways range. I suggest not to entry position below 1.1418 until the turning point certained.
At least , there are 3 ( three ) scenarios that might happen :
Scenario I :
Market endured and zig-zag around 1.4148 , following moving up Trend Line , and entering bullish scenario toward 1.4296. On the other hand if this 1.4148 break , then I strongly assumed Market will moving down and hit 1.4115 Fibonacci 61.8
Scenario II :
Market breaking 1.4148 and will moving down to makes a triangle formation with turning point in level 1.4115 Fibonacci 61.8 , and or level 1.4065 Fibonacci 50.0 . After this turning point been hit, market will have its rebound and moving up again to continuing the bullish scenario toward 1.4296
Scenario III :
Market will moving down and breaking 1.4065 Fibonacci 50.0 , then the bullish structure will change into a deep bearish market
Suggestion :
Entry point in 1.4230 is suggested considering its bullish scenario. But don’t entry position below 1.1418 until the turning point certained.
Trading Range : 1.4115 – 1.4296
Support : 1.4115 , 1.4065
Resistance : 1.4265 , 1.4296
Trend : Sideways with Potential Up
Target : 1.4296
Happy Trading !!! July 30, 2009
Himawan Wardhana
founder of HIMAWAN FOREX
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visit my Blog to see how my method works :
www.himawanforex.blogspot.com
