Quote of the day: “Anger always comes from frustrated expectations” – Elliott Larson
Hello. Crazy EURUSD chart today as it recovered from 1.3530 very fast, retesting 1.3700. Long tailed candle on the daily chart suggesting more upside action, so keep your eyes on 1.3750. Check my yesterday post for some observation on this level. As noticed nowadays – the currency market is sensitive to the Libyan crisis and the EURUSD is no exception (see today’s sell-off). But ECB’s Yves Mersch came to the rescue, boosting the EUR with his hawkish comments. I think that the EURUSD remains slightly bullish for now, especially after today’s close if it will be within the 1.3640-1.37+ territory. A sustained break above 1.3750 is what really matters if we look for decent clues nowadays.
- EURUSD daily chart 2-22-2011
EURJPY
The 4-hrs chart is scary. There’s a 200 points drop in few hours followed by a 160 points recovery – such moves are in many cases bad for both sellers and buyers.
- EURJPY 4hrs chart 2-22-2011
The daily charts look normal, though. Buying on break higher still looks like a good plan if we see the pair recovering to resistance zone.
- EURJPY daily chart 2-22-2011
USDCAD
It’s quite interesting how some parallel lines look like in the chart below. Coincidence? I don’t think so. The dollar seems ready to overcome this resistance level, now that it recovered after last sell-off. But it remains under pressure due to oil and metals prices.
- USDCAD 4hrs chart 2-22-2011
I just check NZDUSD but I don’t want to include the chart now. To all New Zealand readers: I hope you are ok.
Some links for today:
Origins of Bias (a must read)
Shanky’s view on Gold, Silver and S&P500
Will the House of Saud Be the Next to Go Down?
What the renminbi means for American inflation
If U.S. Cities Had Kept Their Original Names
10 incredible images of black holes
Enjoy this great song. See you tomorrow
httpv://www.youtube.com/watch?v=ymdssZOAx3Q
Hi Livui, I like yr WTF candles expression on EJ. Scary indeed, how to trade?
a scalper or day trader probably loves it but if you look to hold a trade for more than a few hours, it doesn't really matter which side you enter in such a day – it's gonna hurt. And there's no way to anticipate – first decline was caused by the earthquake in NZ, then the recovery caused by ECB’s Yves Mersch and current sell-off by following US equities lower. Who knows what happens next and it spikes above 114? (hear that Mr Ben B.? I repeat: equities going down! ) o.0
I really like WTF pattern :-))))))))))))
:D
i couldn't find a better name for it
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Never traded AUDCHF but I am tempted (if I can overcome the 9 pips spread on Saxo).
trade on larger time frames and you won't care if it's 1, 5, 9 or 15 pips :p