Good Morning,
Fundamentally, we have Bernanke on the microphone right now. Additionally, we have claims later in the week and a Friday appearance by Bernanke. I will be looking for the AYOH trade setup on Friday if Bernanke provides any fireworks (yeah right!!!)
Technically, we are bumping up against the 1350 level in SPX. It seems like given recent buying pressure the 1350 area really isn't a level. Technically, you have to be very careful to "lean" on previous levels or ideas as every day, week and month presents us with new overarching mentalities and obviously as of late, the overarching mentality for the technicals has been buy, buy, buy as it relates to equities. For the most part, that has translated to a soft US dollar.
I have been posting some recent articles about the 'V' pattern and I want to expand on that to include "dual timeframe" analysis. The first chart is a Daily chart of the EUR/USD. Look at yesterday's bar - the rejection we saw as the EUR was on its lows. It shows a classic hammer, where the lows were clearly rejected. The second chart will show the intraday chart - a 30 minute view of yesterday's action with a 'V' drawn in and the famous Fibonacci that shows the full retracement and a close near the highs of the day. When we have a close that takes back all of the downside action, you usually have a follow through the next day. We have seen it day after day in equities and we are seeing it day after day in the USD as it loses ground:
Past performance is not indicative of future results
Past performance is not indicative of future results
Happy Trading and Be Environmentally Cool
Coach Brian
Forex is one of the riskiest forms of investment available in the financial markets and suitable for sophisticated individuals and institutions. The possibility exists that you could sustain a substantial loss of funds and therefore you should not invest money that you cannot afford to lose.
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