Peter Bain Forex Trading Commentary for Wednesday August 23, 2006
Forexmentor.com Forex Trading Price Action
The short bias on the euro is still the way to go - i.e., selling the rallies in the downtrend. With the Big Dogs being heavily short with their sentiment, this is obviously the way to go. Now, I'm not saying you can't, or shouldn't, trade the retracements to the long side, as price saw-tooths its way southward to the 2480 level, or thereabouts - if you know how to do that, and what you're doing. But, the easiest thing to do, if you're a novice at this, is to simply wait for a rise in price against the trend, and look for a good entry pointto go short.
Take today, for example. The 4 hour chart last night reflected bearishness (MACD), and the 200 EMA was trending down. Ensuing positive divergence on MACD on the 15 minute saw the EUR/USD pair spike up to the 200 EMA at the London open, where it met resistance - and was repelled at the central pivot point.
For more on what all this technobabble is about, don't forget we have a library full of trading strategies, tips and techniques waiting for you in the members area at www.forexmentor.com.
See today's chart at: http://www.forexmentor.com/campaign/aug2306.html
See latest sample AM Review at: http://www.forexmentor.com/sampler/
The short bias on the euro is still the way to go - i.e., selling the rallies in the downtrend. With the Big Dogs being heavily short with their sentiment, this is obviously the way to go. Now, I'm not saying you can't, or shouldn't, trade the retracements to the long side, as price saw-tooths its way southward to the 2480 level, or thereabouts - if you know how to do that, and what you're doing. But, the easiest thing to do, if you're a novice at this, is to simply wait for a rise in price against the trend, and look for a good entry pointto go short.
Take today, for example. The 4 hour chart last night reflected bearishness (MACD), and the 200 EMA was trending down. Ensuing positive divergence on MACD on the 15 minute saw the EUR/USD pair spike up to the 200 EMA at the London open, where it met resistance - and was repelled at the central pivot point.
For more on what all this technobabble is about, don't forget we have a library full of trading strategies, tips and techniques waiting for you in the members area at www.forexmentor.com.
See today's chart at: http://www.forexmentor.com/campaign/aug2306.html
See latest sample AM Review at: http://www.forexmentor.com/sampler/
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