Technical Analysis: EUR/USD and EUR/GBP

I live by the ocean and have observed that the tidal ebb and flow is very similar to the forex market

Each pair has its cycle and if you stand on a platform high enough to see the whole beach you will observe the pairs come in and go out with remarkable regularity

And the pairs stop at almost the exact same sea-weed line each time.

In fact you know the momentum will keep going until that line is touched.

Then it retreats.

I used to think forex was a spontaneous interactive market place for commercial business to buy and sell foreign exchange needed for buying and selling goods.

No doubt this has truth. But I get the sense it is mainly a function not of exchange deals but of liquidity poroviders who push the tide in and out in order to create an appearance of a market and they do so within a consensus of trading ranges.

While the brokers provide the platforms on which to stand and watch the movements (and gather commission spreads) I am a child paddling around with my bucket and spade hoping not to get washed out by a big sudden wave.

To be continued.

But do not let the fact of the depth of today's low obscure the accurate assessment that indeed, by that singular fact, we are at a crucial turning point. It would not be long (probably before the week runs out), that the Euro makes a most significant turn higher that could take it to year end (being the slow coach that it is). We recon conclusively that price > H4 mid point 1.16268 is a definitive (as in confirmative), indication of the expected turn. Happy trading.

The Crow (-_-)