The Week That Was……..bro

The week ended up being a red candle.  Monday just came off the back of a massive US NFP rally.  This week featured the central bank rate announcements as well as some retail sales figures.  Monday started off with good figures for Europe, although an initial sell off started (possibly an NFP hangover).  Tuesday’s eco’s produced negative figures, hence a sell off during London and NY.  Wednesday featured mixed results, hence ended up being a doji day.  Thursday was meant to be the “BIG DAY OF AWESOME EPICNESS” – however only managed to be on the cover of FAILBLOG.ORG and managed an even narrower doji day than before ><!.  Finally, Friday brought good retails sales and consumer sentiment for the US, hence another end of week sell-off for the Euro.

Dude, thats weak -_-

The plethora of rates announcements did nothing major midweek to keep the euro/usd from consolidating. However, tradewise this promotes a simple buy-low and sell-high plan for the short term. Two days in a row, the Aussie session started with an upsurge (as its doing now), which could mean they are either more optimistic, or that the Dow overnight was green by 75 points plus. Nothing really much to say, except that the potential upside to the Asian session could be limited to 1.4750 if London and New York are still bears.

Pre-Aussie

The Euro/Usd 5min charte above shows “the happs” for last nights New York session. A slight breakout to the upside during London was faced with a stern upper bollingerband at1.4762. A few attempts had been made to penetrate this level, however the “force of the downside” was stronger, as we see a channel above forming to create lower lows. On the lighter side, a small breakout has just been accomplished. With the ALOT of European Central Bank rates coming out like tonight, we can expect even more volatility (hopefully to the upside).

Downtrend Correction

We see above the chart of the Euro/Usd four hour.  Right after the NFP release last Friday, the Euro, as well as other ‘risk’ class assets have been doing nothing but go lower.  On Monday at point A above, the pair is both below the hourly lower bollinger band as well as touching the daily S1 pivot point.  We then see the currency make a 38.2% fib retracement (between Friday’s high and Mondays low) during New York before it also pulled to the downside.  On Tuesday, we see a consolidation around the daily pivot point on the lead up to London Open, however, during Midday, the breakout occurred at point C, where a short after a pullback could have been entered.