TomAspray's  Instablog

Send Message
Tom Aspray, professional trader and analyst was originally trained as a biochemist but began using his computer expertise to analyze the financial markets in the early 1980s. Mr. Aspray has written widely on technical analysis and has given over 60 presentations around the world. Many of the... More
My company:
Tutor Your Trade
My blog:
Charts in Play
My book:
Bi-Weekly Trading Lessons eLetter
  • Sell That Euro! 1 comment
    Jan 12, 2011 10:30 AM | about stocks: UUP

    Chart Analysis:
    The EUR/USD has rebounded nicely from the lows made Sunday night as the markets prepare for the details of Portugal’s debt auction and anxiously await further news on increasing the euro debt fund. The daily chart of the euro FX futures shows the completion of the flag formation with last Thursday’s drop. This appears to be a classic continuation pattern, or in other words, just an interruption in the downtrend.

    • Lower highs and lower lows, consistent with daily downtrend

    • On-balance volume (OBV) weaker than prices, which is negative

    • Completion of flag formation has downside targets at 1.2500-1.2600

    • Hourly chart of EUR/USD reflects the rebound this week with first chart resistance at 1.3050

    • The 38.2% retracement resistance is at 1.3085 with the 50% resistance at 1.3150

    What It Means: Some of those who sold the euro last week appeared to have closed out their positions when it failed to decline further early Monday. Markets are waiting for more news on Portugal and wondering whether Spain is next in line for a bailout. Though the euro could still get closer to the 1.3080 level, a break of Tuesday’s lows would be negative. The euro should resume its decline by the end of the week.

    How to Profit: Aggressive traders could sell the cash EUR/USD at 1.3055-1.3100 with a stop at 1.3188. A more conservative approach would be to wait for a clear sign that the rally is over—such as a lower daily close—before selling the euro.

    My recommendation last week to buy the PowerShares DB US Dollar Index Bullish ETF (UUP) at 22.76-22.98 was not filled, as the low was 23.12. Change that order to buy UUP between 22.98 and 23.16 with a stop at 22.30.

    Stocks: UUP
Back To TomAspray's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (1)
Track new comments
  • gordan finch
    , contributor
    Comments (9) | Send Message
    The Euro has never been able to fill the criteria for each countries fiscal situation. An example is clear in the valuation of goods bought in different member states, some countries goods are overpriced and poor quality. The larger member countries are high quality and lower priced. Its fraud the smaller countries have been placed in debt deliberately by the larger members so that they can buy the poorer countries assets on the cheap. Its how the IMF World Bank creates a loan to the poor lending money at higher interest, it enforces a buy only from the larger countries, not allowing it to buy in house, or in other lower cost countries, and then imposes Austerity and enforces it to sell off all its assets, thus leaving it at the mercy of the Pawn Broking IMF World Banks banking gangsters--the crooks in suits.
    The situation we have now was caused by Insurers and banks with close links to the fraudulent AIG subsidiary of Zurich Financial Services, Zurich the insurer, fined $billions and took over by the US Government. The austerity measures being forced on the poorer in society are a direct result of Zurich insurance fraud. This impacting on countries all over the world who are devaluing your money to lower their debts payments, its fraud your savings are being stolen and there is no Gold Standard to guarantee your moneys value.
    Sterling has been devalued 38%, the Euro has been overvalued 40% the BIS the bank of international settlement is the recipient of the fraudulent overvaluation of the Euro.


    Now the market has a clearer picture of the contagion and the Euro will be forced to devalue, the smaller countries revalue the currency to suit local conditions or default on IMF loans.
    13 Jul 2011, 03:53 AM Reply Like
Full index of posts »
Latest Followers


More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.