Possible Short on EUR/USD

Posted on 16. Nov, 2009 by Jakob in Uncategorized

If you take a look at the chart below (click the picture), you will see that the EUR/USD has be climbing closer to the 1.5000 level and it has even been broken for some 60 pips back on October 26th. On November 11th the EUR/USD was once again up and above the 1.5000 level, creating a close to perfect double top formation on the daily timeframe. In addition to this we have some MACD divergence on the daily chart, which gives us some indication of a possible upcoming reversal. As the pair has bounced off the 1.5000 level two times now, it shows us a good sign of a strong resistance level. It should also be noted that the 1.5000 level act as a psychological level, which is likely to increase its resistance effect. Hence I am bias short, but I will not take another trade before I get a clear signal. I have tried to short it a couple of times now, some have played out well, and others have been recorded losses. As Bernanke will speak in a couple of hours, it is likely that I will take a trade during, or shortly after this event. Preferably I would like to see a close of the four-hour candle below 1.4713 for a possible short trade or a close of the four-hour candle above the 1.5050 for a possible long trade. However, not too far away from these areas as well, as I don’t feel like chasing these trades, specially if we get a long trigger. If I take any trade, it will be posted on twitter, with all the details.

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Related posts:

1. 300 Pip Rally and a Short?
2. EUR/USD – Currently Short
3. October in Review
4. Short-Term Advance Could Set Up Major Top
5. Update on the GBP/USD signal

Tags: EUR/USD, Forex Signals, my signals, trade setup