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  • EUR/USD Selloff – A look at Momentum and Trendline

    From fxtimes.com

    Sell-off: The market is selling EUR/USD to start the week. From last Friday’s (2/1) high of 1.3710, EUR/USD has slid to almost 1.3550 by the beginning of the 2/4 US session. This took out Friday’s low and into a minor consolidation range we saw last week. Momentum: The 1H RSI fell below 40, showing loss of bullish momentum in this time-frame. Last time this happened, we had almost 2 weeks of  sideways action within about a 150-pip range. However, the 4H RSI is still above 40, so momentum in this time-frame remains bullish. Look to see what happens if the correction drags the 4h RSI down to 40. If the ... (full story)

"US market is likely to absorb the bearish wave from Europe, and boosted by some continued positive data, continue its positive trend."
The past week's events in Cyprus bankruptcy situation of the banks bad news from around the house into Spanish political party financing scandal suggest that the Euro is out of the wind shadow, which the ECB action last summer's promise owed​​.
DAX had a real sell off
I found a penny today. That's +100 pips for me.
I'm getting news and it seems that everyone is facing this fall as a buying opportunity...
From wench is the news ssshhhh?
Quoting kckates
From wench is the news ssshhhh?
Bloomberg plataform and FXstreet...
Societe Generale , TD Securities, Brown Brothers Harriman ...
Bought puts friday on /6E (Euro Futures) to anticipate a correction. Several hundred pips in a few weeks should fundamentally cause a correction. US markets gained 6% in Jan.
When the facts change I change my mind, what do you do sir
  •  Guest
  • | IP XX.XXX.7.242
We are in a bullish up trend on the daily, look for buy signals at the bottom of this pullback.
Quoting ssshhhh
Bloomberg plataform and FXstreet...
Societe Generale , TD Securities, Brown Brothers Harriman ...
gotcha, looks as if lots more buying will be necessary to stop this correction
technically , E/U is doing the correction now but will get higher later...hope so ....but looks like price is sitting comfortably at 50% fibo of previous swing , (4h) right now.
Enter Signature
Quoting kckates
gotcha, looks as if lots more buying will be necessary to stop this correction
Large buy volume at dow jones right now, coincides with several "POCs" of last week.
Just want to repeat that last time 1H chart showed loss of bullish momentum and some bearish momentum, we had almost a 2-week consolidation, during which the 4H chart held bullish momentum.

I am not saying this will repeat, but it can be a jump off point for what to anticipate, keeping in mind that the ECB/Draghi can sometimes shake things up.

- Fan
Quoting fxtimes
Just want to repeat that last time 1H chart showed loss of bullish momentum and some bearish momentum, we had almost a 2-week consolidation, during which the 4H chart held bullish momentum.

I am not saying this will repeat, but it can be a jump off point for what to anticipate, keeping in mind that the ECB/Draghi can sometimes shake things up.

- Fan
I agree!
TRADE WHAT U SEE NOT WHAT U WANT TO SEE.
Break my fib fan on H1-TF!
Green pips and good luck everyone!
  •  Guest
  • | IP XXX.XXX.159.54
yields in Greece are rising. You can only fake it for so long. Greece is suffering from strong euro
Quoting Pip Anon
Bought puts friday on /6E (Euro Futures) to anticipate a correction. Several hundred pips in a few weeks should fundamentally cause a correction. US markets gained 6% in Jan.
I love this movement. Every leg up is a leg to sell.
When the facts change I change my mind, what do you do sir
so its time to sell EUR for a now han...
i think EUR/USD will re-trace to 1.3408 before breaking higher.. what do you think?
  •  Guest
  • | IP XX.XXX.38.147
Quoting cadx82
i think EUR/USD will re-trace to 1.3408 before breaking higher.. what do you think?
I think you are right. it seems that once this pair hits a hight with a strong trend, it retraces over 100 pips.

good luck

_Coatl
Quoting ReaM
DAX had a real sell off
DAX took it really hard!
Look at last month when the rate came out, eur went up and im expecting it to do the same this month...its not a "sell off" its a "re-tracement". maybe it'll hit 2450 or 2400 then go up
Anything can happen in FOREX. There's no 100% sure
This market demand a great understanding so that you do not throw away your money
Quoting piptastic
Look at last month when the rate came out, eur went up and im expecting it to do the same this month...its not a "sell off" its a "re-tracement". maybe it'll hit 2450 or 2400 then go up
You can't say 1300 pips a retracement. May be you tried to say 3400 or 3450
Of course euro need some retracement after some splendid bullish run in January and December. But it is bit too fast falling down euro down more than 125 pips against all crosses. Even against gbp it down by 120 pips !!!!!
I see some potential area of demand in the 1.3485-1.35 area. Let's see what transpires here. Still, I have no clue what will happen, but I hope the market will consolidate in a structure that will eventually break to give direction. Today's move might only be part of this consolidation structure - This will be test of patience for traders of my style. - Fan
  •  Guest
  • | IP XX.XXX.241.210
Quoting fxtimes
I see some potential area of demand in the 1.3485-1.35 area. Let's see what transpires here. Still, I have no clue what will happen, but I hope the market will consolidate in a structure that will eventually break to give direction. Today's move might only be part of this consolidation structure - This will be test of patience for traders of my style. - Fan
I agree.
Looks as if we are closing in on the demand level. Divergence of price action vs CCI on 60 and 30 min chart suggests a temp bottom may be developing.
The strong uptrend is still intact, so what we're seeing is a much needed correction to relieve and reset indicators. PA will dictate to the astute traders the next buy opportunity.
Quoting kckates
Looks as if we are closing in on the demand level. Divergence of price action vs CCI on 60 and 30 min chart suggests a temp bottom may be developing.
Maybe, or maybe its the pre Asian session doldrum. I have often gotten paper cuts from false breakouts when volatility is low. Asian-European session might be more indicative.

- Fan
Quoting fxtimes
Maybe, or maybe its the pre Asian session doldrum. I have often gotten paper cuts from false breakouts when volatility is low. Asian-European session might be more indicative.

- Fan
Would the pair to play if you want volatility is EUR/JPY not EUR/USD?
When the facts change I change my mind, what do you do sir
It's way too soon to tell which way the Eur is going to break after this week's ECB announcement.
The weekly chart had a ma crossover on Dec 2nd, and take this from me, a real good break comes with a 5 bar formation with entry on bar 6.

Give the Eur another 3 weeks after the current one and you will be ready to do a good fat trade.
Quoting Bakker
It's way too soon to tell which way the Eur is going to break after this week's ECB announcement.
The weekly chart had a ma crossover on Dec 2nd, and take this from me, a real good break comes with a 5 bar formation with entry on bar 6.

Give the Eur another 3 weeks after the current one and you will be ready to do a good fat trade.
I like the patience.
Quoting cppolybd
You can't say 1300 pips a retracement. May be you tried to say 3400 or 3450
Of course euro need some retracement after some splendid bullish run in January and December. But it is bit too fast falling down euro down more than 125 pips against all crosses. Even against gbp it down by 120 pips !!!!!
yes i did mean 3450 and 3400..my mistake. it did fall fast but this is forex lol
already 3500 it just doesnt look like a downtrend to me.
Anything can happen in FOREX. There's no 100% sure
Some people say EU down, some say up, Brokers enjoy the commision
Quoting Tonny Tri
Some people say EU down, some say up, Brokers enjoy the commision
Really? I don't get commission for trading & I think it's truly fair if you trading without commission
May be it is going to reverse the trend ... Not a correction !!!!!
look at that doji on 30m chart. Its the all important indicator right now!!!
Really? Why?

Quoting Bakker
look at that doji on 30m chart. Its the all important indicator right now!!!
"The meek shall inherit the earth.." Yeah right, good luck with that shit..
Because its always a starting point for a big move to follow.
Quoting cppolybd
May be it is going to reverse the trend ... Not a correction !!!!!
I doubt it...see it almost touched 3450, i have a feeling its gonna zigzag for a few days before it goes up thursday or friday
Anything can happen in FOREX. There's no 100% sure
was how I was thinking, profit taking and a good opportunity to buy.
  •  Guest
  • | IP XXX.XXX.241.93
not targeting anyone but just a word of caution for newcomer. be careful when looking or seeking of advice when its involve your money. I may not wrote a lot here but i do read posts by others. Some of those seems so good advice may came from those who were shorting the euro for the past two weeks when it was on bullish mode LMFAO.

Don't be desperate. read a lot and take it slow. you may find what you are looking for. hopefully. good luck
Quoting Bakker
Because its always a starting point for a big move to follow.
lol Bakker, he doesnt look at 30 mins chart. According to him, only scammers and idiots looks at chart below D1. He trades W1 and MN chart with 1 lot EU and sits on it for 6-30 months for $300-$500 profit.
What can I say, anybody is entitled to his or her opinion. I just made a statement, that's all.
Ya think? Good luck with that...

Quoting Bakker
Because its always a starting point for a big move to follow.
"The meek shall inherit the earth.." Yeah right, good luck with that shit..
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  • Posted: Feb 4, 2013 9:01am
  • Submitted by:
     fxtimes
    Category: Technical Analysis
    Comments: 44  /  Views: 10,040