Friday, May 27, 2011

Euro bumping on trendline 5/27

The dollar has been getting absolutely rocked, with only a small dead cat bounce yesterday off some support. With that comes the euro gaining quite a bit, and heading towards a forming trendline. I think at this point it might be ill advised to enter a short here unless you get some sort of candlestick formation or other signal that this trendline might hold. I think though you might be able to make a good play back to the trendline in yellow if you're scalping intra-day. Otherwise on a daily type position I think it would be wise to stand clear until this picks a direction and not enter anything heading into the long weekend ahead.

Edit: The awful housing number that just came out seems to have maybe given us an engulfing pattern to look into selling the euro here for at least a small gain.

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