Monday, 25 August 2014
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
Saturday, 23 August 2014
I understand about the bearish injection figures but I can help hearing a bullish song from double bottom on the chart. I was expecting more downside from the release of the storage figures. Which make me think along this lines. When price fails to go down when it should then there is some innate bullishness in there somewhere or some other market dynamics issue. If price doesn't break the 3.7000 low impulsively then it could go for the 4.000 where a break of that, if it happens will put us in the well recognized pattern with targets around 4.300