August 31, 2010 02:35

Forex Signals – EUR/USD Bears Steamroll the Bulls

By:

Daily Outlook: Good morning/evening PipHutters! There was no signal yesterday so no trades to review, but the EURUSD was very, very bearish on the day. The pair dropped about 90 pips – a lot but we’ve seen larger drops. The more impressive thing was how it dropped – like clockwork we’ve had our past 10 consecutive 4h candles be bearish. That is 40 hours of straight drops on the 4h charts!

Technically we remain pointed in the downward direction here and, in general, I continue to look for bearish signals to short. The biggest threat to the trade that I see is the possibility of a triangle consolidation wedge forming on the daily charts – if we see a bounce off of 1.2630 then it could signal the pair is going to range for the day.

1.2700 is the key pivot I am watching – above this level I am short-term bullish, below I am bearish.

As always check the candlestick alerts for intraday trading opps and watch out for news events on the forex calendar.

Trading Idea: Primary trade will be to look for opportunities to short below 1.2700 with targets at 1.2675, 1.2645, 1.2615 and 1.2585 for 115 pips profit.

In general I am looking for shorts below 1.2700 and I’m short-term bullish above 2700. A threat to the trade is a possible wedge consolidation pattern that could form if 1.2630 is not broken to the downside.

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261 Comments on "Forex Signals – EUR/USD Bears Steamroll the Bulls"
  1. Avatar of piphut
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    Comment left on:
    August 31, 2010 at 20:24
    piphut says:

    risk aversion much?

    “U.S. stocks post worst August since 2001″:
    http://www.marketwatch.com/story/us-stocks-post-worst-august-since-2001-2010-08-31?siteid=bnbh

  2. Avatar of johnny
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    Comment left on:
    August 31, 2010 at 20:30
    johnny says:

    Off to bed. Goodnight all.

  3. Avatar of kayus
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    Comment left on:
    August 31, 2010 at 20:36
    kayus says:

    i think a SHS is forming with neckline at 1.2664. @johnny have ageat night!

    • Avatar of johnny
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      Comment left on:
      August 31, 2010 at 20:40
      johnny says:

      @KAYUS Thanks. Looks like you are right abt that pattern.
      Anyway, I a real tired, looking forward to my own clean bed (with satin sheets :))
      See you soon again Kayus.

      • Avatar of kayus
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        Comment left on:
        August 31, 2010 at 20:48
        kayus says:

        You are welcome and God bless, Congratulations and have a great sweet night.

  4. Avatar of kayus
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    Comment left on:
    August 31, 2010 at 20:49
    kayus says:

    Good night all, c u all tmr.

  5. Reply
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    Comment left on:
    September 1, 2010 at 12:43
    Mubashir says:

    @mark u r jst an awsom person ur positive responses and thinking.. ur way of guiding all of us… ur hardwork thanks for everything always :) jst keep smiling ever and never be a changed person always remain as ur :) no words to say.
    thanks a lot..

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