Tuesday, 2 September 2014

Monday, 25 August 2014

UsdCad: Pressure is building for a breakout

EurUsd - Breakaway Gap or Abandoned Baby?


Right out of the gate today the US$ gave a smackdown to all the other major currencies. However as the day progressed it appears all the gaps except the eurusd have been filled. This leaves us thinking is this a real breakaway gap (which usuall signifies the midway of the downmove) of is this gap a low volume run in price because UK was on holiday.

I have been tracking an EW 5 move down in this pair as shown in red lines on the chart (5th wave hasnt completed yet. Normally a 3 wave retracement should follow towards 3400. Either way the trend is still down and so if we get a retracement I will use it as a better selling entry. Likewise if the gap doesnt fill then the true bearishness of the eur is now even clearer