PARALYSIS from OVER ANALYSIS? Here are two current charts of Euro vs US$, a 60min and 240 min. The charts may look somewhat confused with too many ML sets drawn but although some ML's are not viable for trade setups, all of the Median Lines drawn here define price swings...some with just one touch but many with multiple touches. The two solid thick magenta & aquamarine lines passing through the chart are long term median lines from daily/weekly longer term charts where price is oscillating around/though/off them. Both are Lower ML Parallels and the aqua/blue line especially seems pretty supportive of price activity. However the point of this exercise is to demonstrate that even there is one or two dominant ML set(s) all the others contribute something and remember price has (i think) reached the centre line in all of them and they all describe some point/swing high/SL of price support/resistance.
As i indicated in my earlier posts on the crucial day of 26th Feb 2010 i think that price has now found support/run out of energy/bottomed (for at least the short term although long term i remain generally bullish of the USD) and could rally sharply over the coming weeks. A 38.2% Fib retracement would take us roughly to the 1.40-1.41 level and a 50% retracement to 1.4280 area.
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