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macplauz
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I am a EUR/USD Trader. I do frequent chart analysis at http://forex-chartanalysis.blogspot.com
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EURO USD Chart Patterns Trading Analysis
  • EUR/USD Market Recap 09.07.12 0 comments
    Jul 9, 2012 2:32 PM
    EUR/USD Market Recap 09.07.12

     

     

    5 min

    On Friday, the Euro closed at the low of June 1st (pink line) after market slightly penetrated this key level during the day. Today, market gapped slightly below Friday's low but initially reversed, closed the gap and consolidated around the pink line most of the day. On the 5 min chart we can see that the daily low of June 1st (pink line) acted as support/resistance. The breakout candle at 3 p.m. (penetrating the pink line) did not get confirmed and market reversed to the upside after hitting the price zone of the consolidation between 9 - 10 a.m. GMT. The main resistance to the upside was the daily pivot point. The Euro formed a bull flag/typical 3-wave-consolidation (red circle) before penetrating the daily pivot for the third time (level already weaken) whereby market breached this level (no confirmation) and triggered most of the stops above the daily pivot. The Euro is currently consolidation at the daily pivot.

    The positioning of the stops above a high/low or strinking levels is easy to anticipate and market often tends to trigger these stops. Very often these levels get penetrated and stops/limit orders get triggered but market reversed (no confirmed breakout-only stop fishing).

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