Party's Over

Good Morning Dynamic Traders

"Better to have tried and failed, than not tried at all"

Cross = EUR : 240min Chart (Posted Below)

Long Term Trend = Down : Short Term Trend = Down

Our colleagues on the other side of the pond have been enjoying a long weekend, with Monday's Martin Luther King Day and yesterdays party into the early hours celebrating the new president Barrack Obama. Today they maybe struggling with a hangover, so beware in the markets and we have USD unemployment figures.

I did mention last night that it was predictable of the market to take back after it gave so much. I pointed to the RN we broke through as support becoming resistance and that is exactly what happened. As I write we are still malingering around the RN and depending on your time frame are indecisive as to which side of it we should be on.

As "Dynamic Traders" we stand back and look at the bigger picture to get a fuller idea of "Trend and Momentum". So tonight I want to look at the 4hr chart and find any confluences.

You will again see the trend lines I have drawn, with price movement remaining within and making a downwards trend. You will observe that even though the trend is down, we do have upward movement that lasts 2-4 days, but we are making lower lows.

RSI remains under 50 and is pointing down.

Stochastics are OS but giving false readings within Advanced Get.

EMA's remain nicely stacked and MACD turned up at 1600hrs yesterday.

As I write the current bar is 2.5 hrs in and currently showing a doji just below the RN and midway between the trend lines. The current bar and previous wicks high, have both touched a Fib retracement level and a return to the downtrend after a breather could be on the cards.

If we get a BOB above the RN, make sure you use ESLT for entry as a false reading could be likely and you would be going against the trend.

As always do your own analysis before entering a trade and place a stop.















Courtesy of Advanced Get / E Signal

Trade with Passion

John Maher
Forex Analyst