Euro at Support?

Good evening forex traders,

I tried to update on Anne's forex blog but was having technical difficulties so instead of analyzig the problem this evening, I thought I would show you my analysis on Euro.

Below is the daily EURUSD chart from Advanced Get.




You will notice we have been in a downtrend for a while but now approaching a key support level. The question now should be is the bounce produced on the Euro today sustainable or is it simply a pullback before the next wave down?

Listening to some analysts on the radio while driving the Aston Martin Vantage (added below for the car fans) through the streets of London you would think that Europe is not even in a recession. The fact is this, I dont know what is going to happen and those that predict we are out of a recession and the Euro and Pound will be getting stronger are second guessing. Yes we are a an important support level and yes we have had a bounce today but was that the dumb money or the smart money? Is that a change of trend or just a blip against the bigger trend?

When looking at charts you need to identify what is driving it in a certain direction. Right now the Euro and Pound have been heading down and we can identify that has been the case after hitting a key resistance area during the second half of 2008. Don't be the first to rush in and assume a position, let the market deal it's hand then use the tools we have shared with you to reap the rewards.

We hope you are all enjoying the dynamic traders blogs and enhancing your learning from their teaching.



On a seperate note, the Aston Martin has a wonderful rumbling sound once over 4000 revs from second gear onwards but a little dull to drive. Delayed reactions from the steering to the wheels make for a lethargic experience. I much prefer my AMG which is almost 20k less for a much more superior all round experience. Over and above that has to be the Porsche 911 turbo.


Good trading.

Javid Shaik
Forex Analyst