05 January 2010

EUR/USD : First Impressions 2010

  • Ended 2009 being cautiously bullish USD. Mildly disappointed at price action thus far (1.5 trading sessions).
  • Looking at EUR/USD chart (=57.6% of USDX) to see if conviction should be shaken.
  • Monthly : Hard to call. But taking out 4 months' worth of rally in 1 big Dec09 black candle can hardly be viewed as positive.
  • Weekly : Rising wedge broken down. Now bear flag, objective around 1.3600. Cannot be a buy no matter how one looks at it.
  • Thus - stay short EUR/USD.

4 comments:

nasdaqstox said...

I just finished reading an article on this that i'll share:

http://tinyurl.com/yccfmws

Taichiseal said...

Thanks TD.

Anonymous said...

The story for this year may well be Dollar divergences. With the EUR heading lower while the CAD and AUD head higher.

Stay open and flexible but like B. Marley said, Time will Tell!

BH

Taichiseal said...

Understood. Thanks.