vendredi 20 mars 2015

Taking a step back from the fray

The volatility of the last few days has a lot of traders scratching their heads and wondering, but if you ignore the spike, and just draw some trend lines on the hourly chart, the price moved above a channel trend line today. That line comes in near the 1.0774 area (see hourly chart below).



If you do not ignore the spike higher, and instead look at the Fibonacci retracement of the move down the price moved above the 38.2% retracement at 1.0774 level and tested the 50% retracement 1.0824. Getting above the 38.2% retracement is one step. Getting above the 50% retracement would be more bullish. Taking a step back and looking at the daily chart, the price has come a long way since peaking last in December. The high from the FOMC day tested the topside trendline. Was at enough? Honestly, it is too early to tell.




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Attached Image (click to enlarge)






Taking a step back from the fray

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