Peter Bain Forex Trading Commentary for Friday July 7, 2006
Forexmentor.com Forex Trading Price Action
If you take a look at the daily chart for the euro, you will notice that the most recent resistance line is being tested at approximately the 2830 level. Also, you will see a head and shoulders pattern on an expanded version of the daily chart, as well as on the weekly.
What with this knowledge, and knowing that the Big Dogs are extremely short the euro/long the dollar, it's just a matter of time before the EUR/USD pair continues its trek south. There is obviously some more long dumb money to be flushed out, before this can happen. I know this is trying folks, but nobody said this was easy, except those people who marry the words forex and easy together. My sentiment remains with the commercial traders - on the short side of this pair.
It takes guts to go against the flow, when it would be all too easy to just follow the crowd, but eventually get wiped out.
For more on how to make the tough trading decisions in this business, please go to the members library at ForexMentor.com.
See today's chart at: http://www.forexmentor.com/campaign/july0706.html
See latest sample AM Review at: http://www.forexmentor.com/sampler/
If you take a look at the daily chart for the euro, you will notice that the most recent resistance line is being tested at approximately the 2830 level. Also, you will see a head and shoulders pattern on an expanded version of the daily chart, as well as on the weekly.
What with this knowledge, and knowing that the Big Dogs are extremely short the euro/long the dollar, it's just a matter of time before the EUR/USD pair continues its trek south. There is obviously some more long dumb money to be flushed out, before this can happen. I know this is trying folks, but nobody said this was easy, except those people who marry the words forex and easy together. My sentiment remains with the commercial traders - on the short side of this pair.
It takes guts to go against the flow, when it would be all too easy to just follow the crowd, but eventually get wiped out.
For more on how to make the tough trading decisions in this business, please go to the members library at ForexMentor.com.
See today's chart at: http://www.forexmentor.com/campaign/july0706.html
See latest sample AM Review at: http://www.forexmentor.com/sampler/
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