In the forum I’ve joined the topic of discussion was the EURUSD and the huge explosion higher over the last two days. We could see the EURUSD to continue moving higher today, hitting key resistance up near 1.3200 before finally paring some of its gains into the New York session.
Apparently, according to the commentary here, this is a classic stop-run/blow out move to flush out all the weak hands and run many trader’s stops who are short. So, it would not be surprising to first see the market move back up and tickle the highs near 1.3180 – 1.3190 and then continue lower back down toward support.
In this awesome move the market recovered 13 days of losses in just 13 hours from late Wednesday into early Thursday trading. If the market stays under 1.3200 – 1.3180 it could easily rotate lower, and you can watch that resistance for price action sell signals over the next 24 hours if we do push higher into that area to trade down towards support.
This pair also jumped higher yesterday and ended the day closing just above the 1.5160 resistance. If it keeps pushing higher up to the next resistance around 1.5300, you canwatch for price action sell signals to trade back down toward support.
- EURUSD Breaks down after Long Tail Baby Candle My personal nomenclature for the trading signals are in the title and I’ll expand upon them in further posts, the rest of this post gives you a quick insight into how a long tail candle followed by a baby candle can lead to a big movement in the direction of the trend. I missed trading this signal, I wasn’t online.
- EURUSD Sitting at Key Level The EURUSD rotated lower today, moving down to re-test the key level near 1.2950. We can see this level has now “flipped” from key resistance to key support, and what the market does from this 1.2950 – 1.3000 support area next week will be critical. If the market manages to hold above it early in the week, we could…