Today is the day we are supposed to see a break-out re the reverse/ Forward reaction count as per in John Cranes book. Sometimes these reversal dates can be spectacular and sometimes they are like a wet firework- However anyone following this blog knows that i watch the reaction lines after i identify what R-line is responsible for what price action. In this case the Rl is a parallel BC line from distance from swing low at 74.00 last Dec to the blue fork BC and then a forward distance projection (not a bar count) see link for chart.
In the USDX you can clearly see the second attempt at the line that has caused all the problems. I am bullish the US$ and have seen the cracks in the Euro vs US$ and will be looking today to get short in the Euro and long USD in the expectation of seeing price action whizz through this RL and upto79.00 where the next reaction line is now above price and will need to be dealt with by retracements and various attempts etc. Euro charts to come if i have time plus my short euro entry- as yet undecided but my two critical levels and ideal entry points are 1.3940-50 limit sell and 1.3890-95 sell stop. I think we will see the euro higher before any southbound journey so must watch price before any trade plan develops.
Here is Euro$...The only thing to watch is the CL failure in the orange d/sloping fork which would see price higher but also in the light blue up/s fork also a CL failure? Puzzling?
Friday, 22 October 2010
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