Looking
at two extremes, my 15-minute chart and the daily, there seems to be a commonality:
The EUR/USD looks a little tired here. If that’s the case, what does this say
about risk and today’s doji candle on the daily dollar?
The EUR/USD is chopping along on the 15-minute chart and this
alone would be a market phase that I would consider for an aggressive “distribution
fade” entry short as prices seem to be stuck in a range. The range reflects the
lack of organized sentiment and momentum without which there is no trend.
The fade short set up would trigger as prices trade up into the
highs of the range as the Stochastics read overbought (above 80).
Past
performance is not indicative of future results
The 15-minute chart has a “two to four
o’clock” 34EMA Wave angle which indicates the likelihood for exhaustion as
prices reach both the top and bottom of the range. The range highs are current
in play as the Stochastics climb towards 80 and an overbought reading.
The daily chart has been struggling to accelerate higher through the
38.2% Fibonacci Retracement level and this makes the 1.3250 major psychological
level an important price to watch since the bulls cannot seem to gain control
of this level and have not been able to make it support.
The doji candle on both the daily EUR/USD and the U.S. Dollar
Index show that today was a draw. Neither the bulls nor bears won the day but I
would have to say there is more support for risk appetite that aversion even
after today’s flat session. If the bulls cannot capitalize on this sentiment,
look for exhaustion to push the EUR/USD lower towards a test of 1.3200.
Past
performance is not indicative of future results
Another fadein the works? The daily EUR/USD seems to lack enough bullish momentum to leave 1.3250 behind. Instead the gravitiational pull of the this level along with a flat day in Dow and U.S. dollar have hit the pause button for the EUR/USD rally.
As an active forex trader and Chief
Currency Analyst for InterbankFX.com I do write for a number of sites all over
the web and I am happy to say that I will be posting updates atwww.IBFXconnect.com. MyActivity Boardwill feature the trades from my trading account as well as
intraday commentary.
Start the discussion! Questions?
Comments. Leave it here at the Daily Forex Trading Edge for Raghee to
personally answer. Using the icons at the top of the article to forward this update
to a friend via email, post it on Google or Facebook or simply print it out for
reading later.
Forex
trading is one of
the riskiest forms of investment available in the financial markets and
suitable for sophisticated individuals and institutions. The possibility exists
that you could sustain a substantial loss of funds and therefore you should not
invest money that you cannot afford to lose.
Posted By:
Raghee Horner
Raghee Horner, chief currency analyst for Interbank FX, provides her personal daily trading tips and insights through Dailyforextradingedge.com. An experienced trader with over fifteen years in the markets, Raghee is the co-founder of EZ2Trade Software and has taught her brand of technical analysis and charting strategies to students all over the world. She is an international author and has taught currencies, futures, and equities trading for over a decade.
Looking at two extremes, my 15-minute chart and the daily, there seems to be a commonality: The EUR/USD looks a little tired here. If that’s the case, what does this say about risk and today’s doji candle on the daily dollar?
The EUR/USD is chopping along on the 15-minute chart and this alone would be a market phase that I would consider for an aggressive “distribution fade” entry short as prices seem to be stuck in a range. The range reflects the lack of organized sentiment and momentum without which there is no trend.
The fade short set up would trigger as prices trade up into the highs of the range as the Stochastics read overbought (above 80).
Past performance is not indicative of future results
The 15-minute chart has a “two to four o’clock” 34EMA Wave angle which indicates the likelihood for exhaustion as prices reach both the top and bottom of the range. The range highs are current in play as the Stochastics climb towards 80 and an overbought reading.
The daily chart has been struggling to accelerate higher through the 38.2% Fibonacci Retracement level and this makes the 1.3250 major psychological level an important price to watch since the bulls cannot seem to gain control of this level and have not been able to make it support.
The doji candle on both the daily EUR/USD and the U.S. Dollar Index show that today was a draw. Neither the bulls nor bears won the day but I would have to say there is more support for risk appetite that aversion even after today’s flat session. If the bulls cannot capitalize on this sentiment, look for exhaustion to push the EUR/USD lower towards a test of 1.3200.
Past performance is not indicative of future results
Another fadein the works? The daily EUR/USD seems to lack enough bullish momentum to leave 1.3250 behind. Instead the gravitiational pull of the this level along with a flat day in Dow and U.S. dollar have hit the pause button for the EUR/USD rally.
As an active forex trader and Chief Currency Analyst for InterbankFX.com I do write for a number of sites all over the web and I am happy to say that I will be posting updates at www.IBFXconnect.com. My Activity Board will feature the trades from my trading account as well as intraday commentary.
Start the discussion! Questions? Comments. Leave it here at the Daily Forex Trading Edge for Raghee to personally answer. Using the icons at the top of the article to forward this update to a friend via email, post it on Google or Facebook or simply print it out for reading later.
Forex trading is one of the riskiest forms of investment available in the financial markets and suitable for sophisticated individuals and institutions. The possibility exists that you could sustain a substantial loss of funds and therefore you should not invest money that you cannot afford to lose.
Raghee Horner