Inside technicals and chart patterns by 
Playing the pullback on the EUR/USD is something I’ve been eyeballing since the U.S> Dollar took off last Friday during NFP. Now that doesn’t mean I won’t wait for a set up but I know what I want to see and that’s a swing play. With the U.S. Dollar Index above 79.00 I know the swing buy on the EUR/USD will have to wait for that major psychological level to break down.
In the channel alert I am not so much interested in the pattern as I am the support of the pattern since the uptrend line is a logical place for support and the daily chart that I am looking to play is sinking into Wave support. I’m trying to get an idea of what the decision level will be as far as where buyers will be enticed to act because after all that’s what’s going to set up the follow-through I am expecting.
I’m certainly not ignoring the downtrend on the 240 and now that the Wave there will be yet another hurdle for the the potential upside of the daily chart.
And then again it’s Summer and the month of August to make matters worse and I have to be ready to accept that all of this may end badly…so my position is relatively small and my stop is five pips below the 34ema low.
Hi,
will the US dollars continue to depreciate against the euros throughtout the week.
THANKS
Hey,
I just started reading your book … “Thirty days of forex trading”…and I came across this blog and thgt i shuld leave a note…
Are you still using the same principles as then (When you wrote the book)?
Cheers,
Abhi
…hey sorry for the late reply Henry but this answer is still a good thing to discuss. If I am looking at a directional forecast a week out it will have to be on a longer term time frame, the daily or 240 usually. Market cycles will shift too often on shorter term time frames like the 15, 30, 60 to really be of that much help for any forecast further out than the current session or even the current financial center.
ABhi, I still use the same tools and principles…my trading has changed little in two decades I am proud to say. I rely on market cycles, support, resistance, patterns, psychological price levels, all tried and true tools. I think my understanding of the market continually improves but the tools I use to do my job are pretty set.