EUR/USD, to much 'talk' of nothing!

eur-usd 06.07.

I didn’t want anything to write on Friday, and today I’m not in the mood as well. Why? Well, there is so many headlines and talk of ‘nothing’, which is moving the market with no sense. But, tehnical analysis works despite everything and all I see is the levels I pointed here before. Greek saga continues, bears are still angry because they can’t break the euro down, everything is the same in the past three weeks. The pair opened the week with gap of -1% at 1.0985, which is almost covered today with high 1.1094,  or only 19 pips away from Friday’s closing. Same game over and over, it’s not hard to trade on the market like this one. What next? 1.1040/50 is the first minor support on the way back, 1.1120/30 on the way up. Daily MA100 is placed at 1.1040 today. Ah, let’s see what headlines will be the next ‘mover’!?

One comment

  • From a technical perspective the current chart patterns in EUR/USD are quite interesting. It is a case of almost Eastern technical analysis against Western technical analysis. Using Japanese candlestick charting techniques, the price action over the weekend is called a falling window.The resistance start at the opening price which was 1.09887 and is at the top on the low from Friday which was 1.10650.Today the price action has broken the top of the resistance and traded higher though currently trades lower. In the West it is called a gap and the trade is to close the gap. The gap started 1.11094 being the closing price on Friday night and finished at 1.09887 being the opening price on Sunday night. The gap has almost closed with the current high of 1.0955. It is short by 13.9 pips. The current price action is 1.0345 which is in the middle of the falling window or gap depending on how you look at it. Thus neither system has worked precisely in so far at the top of the resistance of the rising window has broken and the gap has not been filled. The question going forwards is will the East win with the price action continuing to decline or will the West win with the gap properly closing. Let us see as the US market opens after a days holiday to celebrate their high treason against the British Monarch.

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