We topped out on the euro

Forexmentor.com Forex Trading Price Action

The euro started its ascendancy in the early morning hours today towards the end of the Asian session. It rose right through the London open, and remained high right through the news hour. I just see this as a ‘dumb money’ rally – doomed to fail, and representing a good short opportunity. Negative divergence on MACD to price on the 15 minute chart finally kicked in post-news. Price was also bucking the overall trend, as reflected by the 200 EMA on the 1 hour chart, and the 50 EMA on the 4 hour chart – price being repelled by each EMA respectively. As far as I am concerned, we topped out on the euro at 4 pm ET, Dec. 3. This is pretty much consistent with the Big Dogs being extremely short the euro, long the USD. Sell those rallies folks, and enjoy the ride down. For more on what to look for trading currencies on the forex, join the members at www.forexmentor.com where you’ll find the latest and greatest ideas the pros use.

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