Thursday, March 26, 2009

Day Trading Rules - Patience is a Virtue

The top building phase for euro is very tricky. The lower boundary was attacked three times and made a series of lower lows. Finally, the support was found at 3415 - the low of 3/19. Each breakdown, each lower lower, made it look so like a trend reversal. It's definitely not a time to take the break signal during the phase of range building. Most likely it is a trap. Since the boundary was built, we can shift our attention to the upside breakout. If euro want to stay longer inside of this range, that's fine; if euro take a breakdown, we will respect that. We don't predict how long euro will stay inside of this range, nor which direction it will break, but we do know if ever euro breakout from this range, we would like to follow it.

Pound found its top at 4776, the morning up thrust made a lower high. Key support level is 4392.

Yens retracement was less than 38.2%. So the up trend on hourly chart is still intact. It would be interesting to watch how yen gonna deal with the overhead resistance.


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