MP FOREX ADVISORY

This week, the EUR/USD, after more than two months below the 1.3000 level, finally re-tested this key psychological resistance. When the 1.3000 level was reached on Friday, strong selling pressure sent the pair back down to near the 1.2900 level, closing for the week around 1.2926. The EUR/USD has reached the 61.8% Fibbonacci retracement level from the high on 4/12/10. Moreover, the pair is approaching the 38.2% Fibbonacci level (around 1.3100) from the longer term downtrend starting from the high in December 2009. The pin bar daily candle that formed on Friday suggests that the recent uptrend is possibly in need of a correction. The GBP/USD had a high degree of correlation with the EUR/USD this week, evidenced by the substantially similar chart patterns. This suggests that the currency market is being driven more by news affecting the US Dollar rather than by news affecting the Euro Zone, which is good news for Euro bulls. It appears that market conditions, for now, have returned to a much more normal and stable trading pattern – with breakouts largely occuring in the European and US sessions and with generally flat conditions during the Australian and Asian sessions.  Such market conditions are conducive for the Master Pro Range Trading Model, which attempts to exploit the rhythmic and somewhat predictable sine wave patterns that tend to occur on many currency pairs during the late afternoon hours (US time) when institutional traders tend to be on the sidelines.  We intend to utilize this Model to our advantage once again next week.  We will keep you posted.

Comments are closed.