Further evidence that the euro may have run out of gas

Forexmentor.com Forex Trading Price Action

Okay, I’m still focusing on the euro because I want to see if we have, in fact, topped out – knowing that the Big Dogs are extremely short this currency. The only thing that gave it some oomph this week was Greenspan’s remarks that he saw the U.S. dollar being weak for the next couple years. The dumb money jumped on that, and put a bid on the euro. All week long, I have been suggesting that the euro may have run its course. Yesterday, a downtrend continuation pattern kicked in on the 15 minute chart. The first leg down got under way after the news embargo lifted on Wednesday at 8:30 am ET. Today, we have further evidence that the euro may have run out of gas. MACD had already punched down through its trigger line on the daily chart, and the 50 and 100 EMAs were both trending down on the hourly and 15 minute charts. When the news came out this morning, it caused a downtrend reversal pattern to occur. But, in essence, price was then just bucking the trend, as reflected by the EMAs. It was prudent, using the KTTN model, to look to go short on a break of the A point, with a sell stop five pips below that point at a level not ending in zero. If you want to know more about what the KTTN acronym is all about, then join us in the members are at www.forexmentor.com. There, you’ll find many more strategies, tips and techniques that will propel your forex trading to new heights.

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