Friday, February 4, 2011
Euro Declined in Five
The euro declined in 5 waves and broke below the key level of 1.3569 in the process. I mentioned the 1.3569 level as a key level yesterday. A close beneath 1.3569 today would be very bearish in my view and any resultant rally next week would get me to pound the short side of this currency. The rest of the majors look bullish the dollar as well, other than the AUD/USD which I think is in an ending diagonal and should drop in a dollar rally against it soon. With a clear 5 down and breaking to a new low in the process, the euro is worth the risk/reward to short on rallies in my view.
More on stocks later if anything develops.
PLEASE NOTE: THIS IS JUST AN ANALYSIS BLOG AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. THE DATA HERE IS MERELY AN EXPRESSED OPINION. TRADE AT YOUR OWN RISK.