Wednesday, May 25, 2011

Euro End of Day report 5/25

I suggested in an earlier post that there might of been an opportunity to sell the euro on its retest of the 1.41 level, and it looks like you might of been able to be slightly profitable on that trade, but the pairs direction is starting to look muddled at the close. While were still under 1.41-1.4125 area, which lines up with the purple retracement and the yellow support / resistance line, it looks as though were forming an upward sloping trend line to the south. Usually this type of formation indicates an eventual breakout to the flat side of the triangle. I think there is still more money and less risk to the short side, but I'm not touching this.

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