Monday, December 21, 2009
Gear up for some down trend trading. MERRY CHRISTMAS!!!!!
As I look at the Euro going into the end of the year I see incredible potential for down trend trading. Currently on the EUR/USD we have found support at the 1.4260 level with a nice doji candle that has formed on the Daily chart. If the low of this daily candle is breached we could see further downside to the weekly S1 and Monthly S3 levels. If the 1.4260 low holds we will see a possibly retracement up to the weekly R1 level which coincides nicely with the daily 21 ema. This pair has been riding the 5 on the daily for about two weeks. I look for a retracement anytime back to said levels and then continuation of the downtrend. The reason I say we could possibly fall to the weekly S1 level at 1.4170 is due to the fact that we have confirmed a close below the 200 daily ema to the downside. Price could bounce off this 200 and fall to 1.417. If this is the case I still would look for the retrace I mentioned earlier. The reason I think we could go up from here is due to the fact that the 4hour bollinger band is forming good support and doesn't look like it is welcoming price to the downside any further currently. Only time will tell. If I don't post again this week have a wonderful Christmas and Happy New Year!!!!!!!!!!
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Merry Christmas, Kevin.
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