The Big Dogs are extremely short the euro - my bias is inevitably to the short side

Forexmentor.com Forex Trading Price Action

Well, okay, I was wrong yesterday. I can’t be right every day. Sure would be nice. I beat the ‘sell the rallies drum’ a little bit too early. I was on the right track, but there were two more rallies to come on the euro (EUR/USD pair). Arggghhhhh … Last night, we had the 200, 100, and 50 EMAs all layered in the right order on the 1 hour chart – top to bottom – confirming price weakness. Plus, we’ve had a succession of occurrences of negative divergence on MACD to price. I felt that the ‘rally of all rallies’ wasn’t too far off. And, sure enough, we had a falling off, coming into today’s session, prior to the London open, in the form of a retest of the high, towards the end of the previous session (Tuesday, just before midnight). Lest we not forget that the Big Dogs are extremely short the euro, long the USD. With that always top-of-mind, my bias is inevitably to the short side. And, when a currency pair is topping out, it’s easy to jump in too early. Successful traders spend inordinate amounts of time picking tops and bottoms. That’s where the art in this business really kicks in. If only we could find a crystal ball to do that, we’d be away to the races. A good invention for somebody. So, the wind has finally been let out of the sails on the euro – at least for the time being. Price is falling off, as I write this. I still say the overall top was achieved at 4 pm ET, December 4. I can be judged on that, and will be for sure. For more, beyond my rambling here, get the straight skinny on the facts in the members area.

See latest sample AM Review at: http://www.forexmentor.com/sampler/