Getting Mixed Signals EUR/USD

We have a double bottom on the 38.2% retracement from June lows… We may have a bounce! If we break through could accelerate move to the downside.

8.12.10 EUR/USD

Well, we managed to get a small bounce. Price bounced off the 23.6% retracement in the overnight session sending prices to a lower low before the New York open. Then again attempted another rally that was shut off at the 61.8% retracement from the over night high, which sent price below yesterday’s value area. I will be watching to see the reaction of a retest of today’s value area high at 1.2884. If rejected I will again be looking for short opportunities in tomorrow’s session. If you like candlestick patterns you’ll notice a nice tweezer bottom on the 30 minute from 7-8 this morning.

8.11.10 EUR/USD

Yesterday’s attempted rally was unable to breach the downward channel trend line leaving me with a bearish bias. And I couldn’t have been more correct. We also broke through the long term uptrend line from early June, setting the tone for a tremendous sell off that erased two weeks worth of gains. Here is a chart of the rally attempt as posted to twitter at 2:29 8.10.10… And where we stand currently. I expect a healthy bounce and will be stalking shorts on thursday 8.12.10.

Disclaimer

Before we go any further…

TRADING EQUITIES, FUTURES, OPTIONS OR FOREX OR ANY OTHER INSTRUMENT INVOLVES THE RISK OF LOSS. PLEASE CONSIDER CAREFULLY WHETHER TRADING IS APPROPRIATE TO YOUR FINANCIAL SITUATION. ONLY RISK CAPITAL YOU CAN AFFORD TO LOSE  WHEN TRADING . INVESTORS COULD LOSE MORE THAN THEIR INITIAL INVESTMENT.

This blog is for educational purposes only! Any advice should be considered as speculative and you should only use this information to help form your OWN decisions.