Today’s EURUSD Analysis: Short for yesterday was stopped out for a small loss yesterday as US GDP grew by 3.5% – more than expected and technically signaling an end to the US recession. There is still a lot of weakness in the US economy and much of that growth was driven by government programs/spending, but US stocks rallied nonetheless driving the EUR/USD past resistance levels. I talk about this a lot recently but you have to watch US stocks closely in this risk-appetite driven markets. Strong US stocks signal risk appetite which means the higher yielding Euro will perform better than the record-low interest rate USD will perform poorly. Yesterday was the strong day for US stock markets in 3 months – and the EUR/USD rallied over 100 pips.
Currently the pair is consolidating its gains in a tight 1.4820-1.4855 range which could make for a nice breakout.
Today’s Trading Idea and Signal: On the 4-hour chart we have a nice flagpole with a consolidation pattern forming in a flag pattern. Bias is to the upside. I will look to buy a sustained break of 1.4865 or, if the 60M candlestick is bullish buy near the bottom at 1.4820. Long targets would be 1.4895, 1.4925 and 1.4955. On a sustained break below 1.4815 my tendency would be to sell a rally for a re-challenge of 1.4750.
Have a great weekend all! I should have time this weekend to do some of the things I’ve been meaning to do with PipHut (candlestick article, update “How to Use PipHut’s Signals”, etc), and should be able to fix the loading problems some of our international users are having. Happy Pipping and have a Happy Halloween!
(click to enlarge)
Click here to receive my free forex signals via email
Click here for more info on how to use my free forex signals
Click here to learn how much you can earn with our Forex Income Calculator
Discuss this signal with me and fellow traders at the new Forex Discussion Groups
Hi, Yesterday I got in Short!
Not sure why!
But now sittingwith huge loss!
Do you guys think I should stay in???
sir i m subscribe on your website but i reacive only convermation eamil after that i not reacive any type of chart and etc/ soo u sent me charts and etc
i m wating
Personally I would cut my losses and close it. Why didn’t you use a stop loss??
Thank mark!
Yes I am still learning!
And it looks like I am learning the Hard way!
I love your site Mark!
Thank you
When I calculate the pivot points in the trading site that I use I rarely get the S1, S2 and R1, R2′s to match the support and resistance levels that you quote. I have been basing the pivots on the daily chart and for teh previous days trading – where am I going wrong?
Duncan, I don’t use pivot points. I use previous high/lows, fibonacci and experience.
Ok 1.4815 broke!
Does this mean now we must SHORT???
:)
Nothing like a good breakout signal to get some pips before the weekend :)
Do you see a hammer forming on the 1hour graph?? Anyone?
yeah i saw,
I am in SHORT
Sergey, I am going to join you!!
GOING SHORT
:)
On short you mean sell??!!
Yes SELL
Mark… i think it will continue down to 1.4700 …what do u think ?
Looks good to me. I’d move stop to break even or even lock in 10 or so pips and cover on a bullish reversal candlestick.
Very bullish looking hammer on the 1h chart last hour (15:00 GMT)
Hi Mark, please while working on your site this weekend can you include time when comments are made. It will really be of help to piphutters, thanks.
I found a link to your web site on a Forex website, and I should say… Your web site is tons better. You explain things better, thanks