So I drew a couple horizontal lines for key support/resistance levels on the longer timeframes (H1 and H4) then zoomed into 15 min and drew trendlines based on June 17th to investigate today June 18th. I extended the trendlines as the price action continued, did not edit their slope or location.
It seemed that the price bounced off the trendlines a couple times before eventually breaking past them, and even then the top trendline remained a support for some time.
Hello zaidz…
Just briefly, what is this information telling you?
Given that the Euro shorts are heavy on the Speculative Sentiment Index, what is happening may
just be that speculators are taking their short profits off the table, leaving the Euro to bounce back
up… However, fundamentally, with the ultimate failure of EuroZone talks today with Greece, and
Quantitative Easing in full swing at the ECB, there really is very little to keep risk capital flowing
into EuroZone financial assets (or to flow more than it has been)…
So, a rising Euro is… a trap… in essence, it is not supported by fundamentals and if you look at
EUR/GBP, for example, you get a clearer picture of fundamentals, with the Euro losing to the Pound,
big time…
I would be careful, therefore, before you put a bid in for a Euro long positioning, unless it is a shorter
term kind of trade…
Nothing wrong with your analysis, but, still, what does it tell you?
I think pipmehappy raised a very good question: What does this tell you? I would emphasize the ‘you’ part in the question.
