Thursday, June 25, 2009

Short Selling Day for Both Pound and Euro

Euro made a fake breakout at the beginning of London session. A temporary support was found at pivot point 1.4006. The breakdown from the descending triangle pattern gave away the true intention of the market - downward. Pivot point also shifted as resistance after the breakdown. Euro reached its second downward goal at 1.3892 (average daily range + 1sd).

euro fake breakout
Pound had a similar behavior as euro. There is a strong resistance from 1.66 (on daily point and figure charts, pound formed a triple top pattern at 1.66). After breakdown the top of former day 1.6474, it changed as resistance as well. The downward momentum found a temporary support at the confluence zone of pivot point (1.6379) and 10-day EMA (1.6368).

short selling pound

The forex trading strategies for a short selling day is to follow the downward momentum and establish short positions. For both pound and euro, the high probability and low risk forex trade signal was given at the breakdown of former day's high and pivot point respectively.


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