Crunch Time For EURUSD – 5/26/2010


EURUSD Daily – As we look at the daily chart on the EURUSD we see today is the 5th Daily bar testing the 1.2150 level on the currency pair.  This could be setting up for a volatile move in either direction.  Why?  Well first technically this level is a line in the sand for the last 8 trading days.  A break here would open it up to at least 1.2000.  If we break 1.2150 you could get short with a stop of the 30 min Tenkan Sen or Kijun Sen plus a buffer.  If we hold here then we could get long on a break of the 30 min Kijun Sun with a stop using the 30 min Tenkan Sen or Kijun Sun depending on your risk.  In addition with the US holiday coming up trading volumes should be lighter and it wouldn’t take a lot to move a currency pair.  It would be a golden opportunity for a central bank not on a holiday to intervene.
 
For EDUCATIONAL USE. Commodity Futures Trading Comission, Forex, Futures, Equity and options trading has large potential rewards, but also large potential risk and may not be suitable for everyone. You must be aware of the risks and be willing to accept them in order to invest in these markets. Do not trade with money you can not afford to lose. This is neither a solicitation nor an offer to Buy/Sell. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this document. The past performance of any trading system or methodology is not necessarily indicative of future results. All information provide d on the Blog is for educational purpose

About the Author David Terk