Euro bubbles onward

The chart shows an almost perfect breakfast trade setup. A high volume activity spike with an engulfing 15 minute candle started a move at 7.00 am that has just hit 200 pips at a round number and two Fib resistance points.

Yesterday, the Euro looked to test a multi-low but shied away from breaking below 1.39. It is now looking that there could be unfinished business at that level. For now the US$ is weak and we are staying with the trend, content to take these morning moves.

Markets are very thin again this week and consequently postion sizes are somewhat smaller than usual as the whipsawing in evidence last week could well continue.

George@clickevents.co.uk

Christmas Trading

The strength Cable showed early yesterday was short lived, followed by a sharp run down below the lows having briefly touched $1.49. Right now, $1.47 is the key level to hold, if it breaks then off we go again.

However, sentiment is so universally bearish and markets so often do the opposite of the consensus opinion, that I will be keeping a close eye if these keys levels hold.

Against the Euro 95 is still holding and is not yet a foregone conclusion that parity will follow. The potential MPR pattern has still to play out, either way.

These thinly traded Christmas markets are certainly exciting with increased volatility, moves are exagerated and stops easily picked off so take care!

Have a Happy Christmas and wishing you a Prosperous New Year.

George H.

This Correction looks serious

Cable is picking up strength this morning in these thin holiday markets and the EURGBP pair correction is now getting underway.

Resistance at 95 has pushed price back that has developed a multi Point Reversal pattern that could send the pair back down by a few hundred pips.

Review of Euro, Oil and Gold

The week ended with some very tradeable moves on the Euro. The weeks upmove proved unsustainable and Friday resulted in the sell off seen on this chart. This morning and afternoon move will have brought plenty of Christmas cheer to traders who caught either, or both, of the moves.

Looking ahead, we are keeping a close eye on both Crude Oil, that has now retraced most of the major upmove, and Gold, that many say is on the way to $2,000. The video review is now available to members at http://www.tradersclass.net/

Momentum and the Euro

Without a doubt the Euro is a one way bet this week after nine up days in a row, but is it just a one way bet? The chart shows the move but there are now several technical factors, including the round number at 9500 and the extension of this wave 5, that suggest some caution here.

As I write, the US$ is flirting with new lows against what is currently perceived as the most sound economic area in the world. The interest rate differential is now so far in favour of the Euro and add in the perception of the total lack of the US regulators knowledge of what is going on in their own back yard and it is no wonder that the US currency is being sold.

The latest http://www.tradersclass.net/ video is available to paid up members that reminds us that 1 + 1 still adds up to 2 despite these massives currency swings.

Onward to Parity?

And it's yet another day that the Euro hits a new high against the poor old British Pound. The chart shows a clear five wave structure so far, and now that wave five has extended 150% of wave one, I am reminded that markets never move in an uninterrupted straight line for ever!

The market seems to have parity at 1:1 in it's sights and, despite the above, there is no good reason to do anything other than stay with the trend - for now and until a reliable topping pattern develops.

TradersClass members can view the video updates on the Euro vs US$ and also the Swissy, both published at http://www.tradersclass.net/