'Market and Human' Psychology perspectives with tips on how to avoid common mistakes by Pierre Charlebois, Senior Trading Coach at www.TradingPostFinancial.com
Hello all,
I wish to thank all that have been following my blog and also FX Street for creating and providing this forum where I have enjoyed posting my comments and musing about the FX spot market.
It is with regret I will not be posting any longer however as we all know change is inevitable and necessary.
Thank you all and thank you FX street.
The look of the move up, breaking out of the channel appears impulsive and may be signaling a temporary bottom.
The price action on the EUR/USD is now reaching the lower area of the trend channel.
Bear in mind the trend is strong and it may pierce the lower line.
The price is approaching a very important barrier. And more importantly the top is quite unorthodox. It just does not look typical.
From an Elliott Wave perspective this looks more like a couple of ABC’s then anything. If so, this would give way to a new rally.
Having said that the drop is strong. The retrace should provide clues to the overall direction.
The EUR/USD price action is now at the point where it may retrace.
Let’s see what the balance of the week brings.
Here’s a view of the EUR/USD with two possible outcomes
Let’s start a healthy debate on wheater the EUR/USD is indeed on a new trend and if the USD in general is now going to strenthen.
In your comments make a vote: EUR/USD ‘Up’ or ‘Down’
Whenever there is a substantial move I try to look very long term to see it in context.
Well… There now appears that a very large diagonal may have been forming all along even larger than I first anticipated.
Having said this, the bottom of the pattern would now need to hold and support a new upward thrust.
We are of course at the Rubicon on this lower trend-line and the last few weeks of this year will prove very interesting indeed.
