Monday, May 23, 2011
Trend for 23rd of May 2011
Coming back to what I wrote a few days ago, just wanted to remind you that eur/cad did break down through support that I had indicated. The head and shoulder pattern was fulfilled on 4 hour chart. The move was slow as the pattern was on short time frame and moves on Mondays are usually pretty small. Tomorrow we have one significant piece from Europe that could continue pushing Euro pairs down (German Gross Domestic Product). Now the pair (eur/cad is retracing, but it can see another leg down tomorrow).
I studied eur/usd pair a little bit today. On the one hand I see a divergence on RSI indicator on daily charts. On the other hand the pair pushed through the support and looking and daily and weekly charts I see support at 1.3700 and 1.3500 level. I have some sort of intuition that it will reach 1.3500 level, but as you may know, you cannot fully trust your intuition in financial markets. Follow the markets and trade what you see, not what you feel should be your rule no 1.
So, as there is no major news tomorrow, except data from Europe at 6:00 GMT, the markets may continue in the direction they started the week (after the news is released). Be ready to short euro pairs if the news pushes down them below the most recent support levels that would be established during Asian session today. Mark those levels and wait for news with both buy stop orders above 4 hour chart high and sell stop orders below 4 hour chart low. If you are new to the stuff be do not hurry to trade. Learn to analyze markets first and watch what happens around news events. You will learn a lot. See you tomorrow.
Read my previous post:
Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.