Friday, 11 November 2011

Back again to the 1975 CL.....EURUSD

I can hardly believe it but i thought we had seen the last of the thick black centre line from the most important fork than can possibly be drawn in any EURUSD chart. Here we are approaching it at speed and i thought we had at least for some time been heading lower but these are strange times. All i do know is this magnet line is a superb trade setup in itself. For more info on this fork(its pivots etc) click here. Now this line is resistance and we will see how price behaves when it meets it. I can count 9 short term reversals from underneath approaches since this historic centre line was encountered this september 14th. If you look back over the last 10+ years it runs right through all important price movements. If you are interested in how i use historical forks and more importantly their reaction lines i will have a PDF document available soon.
Lastly: look at the B-line stochastic and the short stoch ribbons...classic high probability trades in the trend direction up/entry on the retracements in both the 15 and 5 min TF today.

Comment:What occurs to me is that if we cannot get convincingly below 1.3500 with shocking fundamentals like we have seen this week (crisis? What crisis...ending the week a whisker under 1.38!) then i suspect we may be going higher -back upto 1.40 sooner than I thought and perhaps the future is on the other side of this CL if we are unable to break below. Whatever happens.. a convicing daily trend away from this line ( up or down) will indicate future direction for me.

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