Thursday, 24 March 2011

EUR- top is in?

I put out a post recently suggesting a great double bottom setup in the USD Index and double top in the EUR: This is now playing out.

The DXY spot chart gave me a confirmed Daily long signal last night. Tonight when the ICE futures open, I will looking to get long. Unfortunately, EUR sold off just short of my ideal level and has fallen almost 200pips. There is some potential support coming in here as per the chart below. The trend is now down on the 60mins EUR chart and momentum is making new lows. There is a confirmed bearish candle reversal pattern on the Daily. Thus, I think the best setup in EUR is to look to short the first rally into the moving averages/resistance on the 60mins.

DXY Daily:

EURUSD 60mins:


Good Luck