Attached is the daily and the weekly chart for EURUSD. You can see from the daily chart that the price has been finding it difficult to close above the daily resistance at 1.3306 and it has failed in 2 successive attempts. But the weekly charts show that for the past 2 weeks, price has fallen down but has again closed right back up.
The fact that the price fell down and then came back up again shows that it has good strength now. Also, on the dailies, we could see that though it has failed to close above 1.3360 and this price has proved to be tough resistance, the fall has not been huge.
Normally, if indeed huge selling had been there, we should have seen price fall down by 200-300 pips and also close the week on its lows. But we have seen the price fall only about 150 pips and even then the price has come back up again.
All of the above shows that EURUSD still has lot of strength in it. So, this week, we might see this pair going up, breaking the strong resistance at 1.3360 and make an assault on the next weekly resistance at 1.37..
Hi
ReplyDeleteIt i am just a newbie. It is good to buy it? On which position it is good to buy?
and how much pips to place stoploss away?
Thanks
Hai Karthik,
ReplyDeleteI've been following your postings and find them very interesting. Although still having problem fully understanding the mechanics of MM, but very hopeful it will help me in my trading. Keep up the good work!