Monday, February 16, 2009

Euro Support Line

This is the Euro-USD hourly chart. As you can see, the price action
currently is near the support line after having bounced back off it.
One can put in a limit order a little lower & wait for order to
fill in. Keep a stop of around 80, that should be good enough. You can
use the downward sloping resistance line to book profits (tested 5
times now).

If price action is not able to sustain this level
we will see a decent move to the downside. 1.27 is a good support &
break of that level should see shorts coming in fast & furious.
Apart from that a Head & Shoulders (with our support line as the
neck line) will be completed. That means the move to the downside would
be a minimum of 350-400 pips (H & S pattern implication  = vertical
distance of head from neck line).

Overall direction is not clear at all , with price action over past few weeks being to & fro & very choppy.