Tuesday, March 10, 2009

03/10/09 Forex Market Comments

EUR/USD: Monday euro formed a NR4/ID (narrow range 4 and inside day). If euro could either breakout or breakdown, we would have a nice swing setup.

There are two breakout signals. The 4:00am breakout is fake. The real breakout happened at 8:00am. In 30 minutes, euro reached its daily high with 1sd over its average daily range (The first green line is average daily range, the second green line is average daily range plus 1sd.) Then euro gradually slide back. Around 1:30pm, euro breakdown yesterday high (YDH) and the trend line, which nulls the breakout. After a brief test of YDH, euro crashed 100pips in 30 mintues and found support around pivot point (white line). The downside movements also reached its average daily range.


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