Thursday 11 April 2013

Risky EURUSD pair

EUR/USD is a highly traded pair. But this is now one of the risky pair. It's move is becoming more and more messy. I was watching the EURUSD pair. Now it's on bullish move as evidenced by the moving averages.
Price is now developing a bear channel and price is now right at the area between 30 & 50 SMA. Which is my dynamic area of support/resistance. Here it's acting as a dynamic support. Above there is an important level 1.3100. If price can clear this level by breaking out from the bear channel then there is 1.3250 is on the way.

Though this pair is bullish on H1 chart but it's bearish on monthly chart.
This pair is also bearish on weekly chart. According to many analyst, the fate of this pair is bearish in the long run. But even then I wish to trade long for short term if it clears the above mentioned level. Because there is a confluence of dynamic area, diagonal trend line, horizontal trend line and presence of a price action where price is consolidating in a bear channel as mentioned above. So with the break up of the channel from the area between moving average and after clearance of important levels, I'll go long. Let's see what happens.

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