Friday, October 1, 2010

EURUSD Rally on Overdrive

EURUSD is trading by mob rule; sellers simply can't stop the wave of buying. An angle of ascent close to 75 degrees with a $0.10 gain in under a month is tempting the kind of sharp correction seen in early August.

Zignals Chart Image

There is a tight rising channel to help mark the exit, with support currently around $1.3510 - if a pullback doesn't stop at this line it will likely see a rush to exits.

Drilling into the intraday chart, current action at 1.3734, puts the EURUSD at a 5-day wedge resistance line. This coiling action has support c1.3640, a break of which may trigger a larger pullback to support of a 7-day rising channel at $1.3500, effectively daily support.


As for my trading strategies, yesterday's selling didn't do too much long term damage; most of the exits were in Indian strategies.

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