Good Morning Dynamic Traders
"Better to have tried and failed, than not tried at all"
Cross = EUR : Monthly & Day Chart (Posted Below)
Long Term Trend = UP : Short Term Trend = Down
With the Tories bringing back the former Chancellor as part of the Shadow cabinet, Kenneth Clarke has opposing views on the Euro than the present Tory bench and in the mist of yesterdays financial debates, I thought it just to select the EUR as this weeks chart.
Before I start the analysis, I see Javid also has been adding another member to his back bench of FULL TIME traders. Welcome Saba and congratulations on your decision to join the bench, I am sure Javid is trying to get into Europe so lets look at what is happening.
The 1st chart is the Monthly, which if you look at the candles, there is a significant change in their size since August and alike to other topics, in Forex "Size Does Matter". The larger the bars the more chance of gathering some profits. Having got a feel for the trend and direction lets move to the Daily chart.
We can see that we have had a deep pull-back from the down trend towards the value index and have been heading down again since 18th December. You will also notice that price has kept within the trend lines drawn on the chart and at present is confronting a RN.
If we break through the RN we have some 650 pips before we find previous support.
MACD has crossed under the signal line and recently crossed the zero line, indicating bear rather than bull.
The 20EMA returning under the 60EMA would also confirm a down trend.
RSI is under 50 and pointing down.
There is a number of confluence of events to be patient and use the ESLT on a BOB of the RN if it happens. Use a smaller timeframe to identify entry more accurate.
As always do your own analysis before entering any trade and check for news items relevant to your cross.
Courtesy of Advanced Get / E Signal
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