Thanks to puma's excellent TA of the EUR/USD, he showed how it
was in an inverted H & S, and broke out, also credit Matt and
Steve showing it in a bullish falling wedge it broke out of today.
It looks like on the flip side, the dollar was in a regular H
& S pattern, and broke down through the neckline at the same
time the EUR/USD broke up through it's inverted neckline. Now
that the EURUSD has started to pullback from that breakthrough this
afternoon, it seems to want to retest the neckline around 1.2440,
and the US dollar to retest it's neckline around the 86.4 area.
Going to wait for the retest to go long again on the EURUSD,
and/or short the dollar.
As Matt and Steve say with the market tomorrow in looking for a
long entry, look for divergences on the shorter timeframe charts.
EUR/USD only pulled back to 1.2453 so far, but it's trying
to form a base and reverse, and showing positive
divergence, even looking better on 10-15 min. charts now.
That may have been close enough for gov't work, will see how
the divergences and base plays out from here, may not get back down
to 1.244. Be careful though and use stops, the volatility is
a lot higher than stocks with fast and wild swings. don't want to
be caught on the wrong side of the trade.
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EUR/USD and dollar neckline retest
Posted by sonia on 20th of May 2010 at 05:16 pm
Thanks to puma's excellent TA of the EUR/USD, he showed how it was in an inverted H & S, and broke out, also credit Matt and Steve showing it in a bullish falling wedge it broke out of today. It looks like on the flip side, the dollar was in a regular H & S pattern, and broke down through the neckline at the same time the EUR/USD broke up through it's inverted neckline. Now that the EURUSD has started to pullback from that breakthrough this afternoon, it seems to want to retest the neckline around 1.2440, and the US dollar to retest it's neckline around the 86.4 area. Going to wait for the retest to go long again on the EURUSD, and/or short the dollar.
EUR/USD and dollar neckline retest
Posted by sonia on 20th of May 2010 at 06:00 pm
As Matt and Steve say with the market tomorrow in looking for a long entry, look for divergences on the shorter timeframe charts. EUR/USD only pulled back to 1.2453 so far, but it's trying to form a base and reverse, and showing positive divergence, even looking better on 10-15 min. charts now. That may have been close enough for gov't work, will see how the divergences and base plays out from here, may not get back down to 1.244. Be careful though and use stops, the volatility is a lot higher than stocks with fast and wild swings. don't want to be caught on the wrong side of the trade.