• EUR/USD Symmetry Finds Post-Trade Balance Buying Interest
• Cable 50 Points from Support
• EUR/GBP Looking To Hold Figure, Channel Support

Apologies for the late report today, but I wanted to watch the market reaction to the better than expected trade balance release before I formulated today's game plan. Traders loved the release, but the trade balance has a recent history of over-reaction, so we should be looking to play the short term over reaction.

EUR/USD has pulled back to a beautiful symmetrical Fib zone at 1.2080 after the powerful 70+ point move lower. Notice the previous retracement AB beginning at 1.2208 to 1.1952 low, which lasted exactly 31 bars on the 4-hour chart. Our current CD retracement originating at 1.2334 finds symmetrical support at point D of 1.2076 which also happens to find uptrend line support at the exact same level. Retracement C-D is in its 27th bar and would need to consolidate for another few 240-min bars or so to reach our time target. No need to be exact here as EUR/USD has already bounced 30 points from the 1.2065 low.

Cable shows a similar uptrend support line, but not for another 70 points below the current market where as EUR/USD is at support.

So what are the implications of EUR/USD at support and GBP/USD well above support? That means EUR/USD should find more buying interest at current levels as compared to GBP/USD, which has room to decline thus sending EUR/GPB higher. EUR/GBP 3-hour chart has pulled back to uptrend channel, Fib support just above the 0.6900 level. If our scenario is to play out, EUR/GBP should hold the figure and make a run back towards the pre-London breakdown point of 0.6940.

A closer look at the 90-min chart shows 1.618 Ext and .786 Ret support right at the 0.6900 level . We will be looking to establish longs above the figure with stops below 0.6885 targeting 0.6940 on partials to trail a stop to breakeven for a ride up 0.6975.

Yesterday's EUR/JPY trade found our 143.40-50 entry point before a move up to 143.80 in London, which most likely gave you an opportunity to scale out of partials or at least bring the stop to breakeven.

Todd Gordon is a Technical Currency Strategist and Fund Trader with GAIN Capital Group.

Disclaimer
The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.