We have been asked a few times now what we think will happen with the Euro. The answer is we do not know. All we can go by is our technical analysis and back in December we updated the site with our analysis of the Euro showing resistance. Based on that our trading bias was to the short side but if we broke the resistance we would have adapted and taken a long position. Since the high of January we have seen a drop of over 400 pips (at the time of writing this) and are just below a support level today which could end with a fake out.
The short term view of the Euro was a short. On one of our systems we had a sell signal on Friday but did not take a position on this pair until after midnight today and have managed a 100 pip profit so far. We are now managing the trade.
Chart courtesy of Metastock. Data provided by Quote Center.
We also had a failiure at a fib reversal and divergence (neither shown on chart) all adding to our confluence prior to taking this trade.
We also updated yesterday so please have a read below.
Good luck this week.
Anne Chapman & Javid Shaik