Thursday February 16, 2017 - 10:56:55 GMT
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Amazing Trader EURUSD charts updated to your systems
This has not been the largest EURUSD short-covering rallies I've ever seen, but it has to be one of the most relentless. The price action over the last 24-hours or so has the feel of the entire market having been caught short EURUSD. I have been warning here for the last couple of months about the risk of trading on "conventional wisdom". Simply put, if "everyone" is already long USD (stocks, gold, etc.), who is left to buy them from you at a higher price? So as the USD started to fall yesterday, there were not many left uncommitted in the market to buy on the dips. The USD can eventually rally again, but a necessary prerequisite will be for a sufficient number of USD bulls to square up or go short first. Today's HOD has been 1.0642 and its LOD 1.0588. As usual, Expect stops to be resting just beyond these limits. The risk remains to the upside with many EURUSD shorts having been stopped out. It MIGHT take a capitulation EURUSD spike to level out positions sufficiently to return to a two-way market. Local resistance comes in at 1.0624, then 1.0610. Use +/- 1.0600 to set the tone. Below 1.0600, support is 1.0580. From a very broad perspective, the 20-day average of 1.0698 is sitting on the horizon.
The GBPUSD is looking bid today. The GBPUSD HOD bas been 1.2525. Its LOD is 1.2451. The EURGBP is aboout even on the day. Flows in and out of the EURGBP cross can have a significant impact on the value of EURUSD and distort the EURUSD's tone. Tune in frequently to the GVI Forum for updated trading insights as the session unfolds.
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