Tuesday March 16, 2010 - 19:51:50 GMT
Share This Story
FXTimes - www.fxtimes.com
FXTimes: Daily Technical Update Stalking the Choppy EUR/USD
Stalking the Choppy EUR/USD
- 4H: Yesterdayâ€™s video post mentioned that there may be bottoming action at the 1.3665 area (61.8% retracement). (Refer to Daily Video Technical Update 3.15.2010).
The market dropped slightly below that but started to rally in the
Asian session, had a quick correction when the European session
started, and shot up again as that session went underway and the Asian
session came to an end.
- Looking at the stochastic, the market looks neutral after the
downswing to start the week. The rally in the Asian-European session is
represented by a pause in momentum, and suggests possible continuation
in the short-term.
- 1H: We can see that in the 1H chart, the market
had 2 upswings to start the week. The current swing is more pronounced
but is also the one running into resistance at 61.8% retracement, and a
declining trendline. The 1.3730 area is also a previous support now
tested as resistance.
- Line this up with the slight bearish implications in the 4H
time-frame, and you should recognize that we should be monitoring the
1.37-1.3750 area. If the market breaks above 1.3750, a bullish
continuation towards 1.42 with a little bit of resistance that the
market may work on near 1.3850 and 1.40. These are the short-term
resistance areas that should be monitored.
- Notes: Remember, we are in an established
downtrend in the longer intermediate term, so all the bullish signals
at the moment are short to shorter intermediate term.
- If the rally is choppy as the market has been since February, we
can assume that the market is still undecided and that the longer it is
undecided, the higher it will move as holding short positions represent
opportunity cost, and a slow outflow can be shown on the chart as a
- This brings us to the anticipation of a big move, that is combined
with a weak correction. That will probably give us the new direction.
- Before that, the market may be choppying until 1.3850, then if it breaks above, the road to 1.42 may be sharper.
Commodity Trading Advisor
Information and opinions contained in this report are for
educational purposes only and do not constitute an investment advice.
While the information contained herein was obtained from sources
believed to be reliable, author does not guarantee its accuracy or
completeness. CMS will not accept liability for any loss of profit or
damage which may arise directly, indirectly or consequently from use of
or reliance on the trading set-ups or any accompanying chart analyses.
Foreign currency trading is not conducted on an exchange. CMS is
acting as a counterparty to its clientsâ€™ transactions and as a result,
CMSâ€™ interests may be in conflict with its clients. Since CMS acts as
the buyer or seller in the transaction one should carefully evaluate
any trade recommendation provided by CMS or any of its solicitors.
Foreign currency trading involves a substantial risk of loss and may
not be suitable for all investors.
All screenshots are made from VT Trader 2.0 and are of actual market data at the time of the screenshot.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."