Sunday, July 26, 2009
EURUSD Charts Reading Breakout Potential
Personally, I want to side with those who think the market is going to collapse further. If that were to happen, many people would run into the dollar (a relatively safe haven) pushing the EURUSD pair downward. It really doesn't matter what I feel, though, especially with the above chart. It appears that price action is building up right below 1.4250. I've seen this before, and given the current "less-than-terrible earnings," I wouldn't be surprised to see a breakout. (FYI: I haven't added any longs yet, albeit I also have no shorts.)
Here's an hourly chart. As you can see there's been quite a bit of upward clashing into the 1.4250 boundary. The one major pullback didn't hold at all, and actually took place on largely limited volume (off hours). Looks like a sweet (they tend to work, especially in this environment) bull flag forming. I don't know when we will break up, or if we even will. But I do think that with some care, such perspective can give you an edge, especially with some of the continued strong short interest expressed by the permabears. They could definitely add some fuel to this fire.
PS: I'm going to try to vary emphasis among topics a little more than I have been recently. My interest in poker is strong right now since I have just begun, and learning new things is so easy (i.e. it's much easier to learn things when you don't know much; the basics).
Take care--more to come.