Almost a 3:1 containment under the 4 day MA of highs. I’m definitely a buyer if it breaks that MA. Tempting now but would wait for 3.5:1 to do preemptively.
Not uncommon. This happens. Important not to get married to a trade or position. After a compression ratio of about 4:1, not surprised to see a pop. The real potential reversal is the zero slope MA just above recent price action. Potentially explosive if violated.
The markets BITO, FXE, GLD, TLT are all under extreme downleg compressions. A resolution or resolution failure could cause an extreme reaction in any or all of these markets. If there is a marked retracement in any of these markets an out of the money call position could offer an exceptional opportunity even if only one of these markets complies, IMHO.
The long term zero slope pivot MA and the containment MA together warning of imminent and perhaps significant if not lengthy rally. I am in preemptively and also have some dry powder if/once triggered.
Not sure I've seen too many better upside pivot setups. I'm already long preemptively with tight stops. The real juice is just above with zero slope MA and containment MA now also roughly zero slope.
FXE tracks the Euro currency. Christine Lagarde reiterated no rate hike decision at today's ECB Press Conference. Although she keeps saying no rate hike in March or in 2022 for that matter, she did say the governing council are concerned about short term inflation and asset purchases have to be completed before any rate hike. Here's a 4hr chart, 4-month view: I'm...
One of the most blatant head and shoulder patterns I have ever seen on a chart. Risk Reward box dhows where I opened my position and where I set stop losses. RSI approaching seriously oversold levels so I would expect some support soon, Regardless anticipating a 6-month decent to 106, while Fib levels call for a possible 103 test.
The $Euro has stayed above the orange level, around $109, for a year. We have seen several tests of this level (shown by the purple arrows).
Why does it matter?
1. The US dollar has an inverse correlation with the Euro as well as Gold.
2. A strong US dollar negatively affects international equity (such as Europe and Emerging Markets).
3. A weak dollar...
using a few stripped down indicators (Simple Moving Averages, which can be supplemented with ADX and ATR), EURO strength and breakouts popped up last week with on a weekly price basis. This looks like a trade which can be entered as the pair hits averages and "support". (Look at other pairs, including gold itself) and USD weakness has return as of summer 2020.
Mostly written up in the chart. My dowsing method and the technical setup looks like a decent setup with a stop above the high of the other day $106.40.
We shall see.
