While I have not really been trading much, I still do keep myself updated with major currencies. I still check the charts to confirm my strategies.
Disclaimer: I am not responsible for any losses.
This post represents my opinion and I am not a qualified trader.
I took a look at Aud/Usd and Eur/Usd and manage to upload my opinions about them. Coincidentally, they reach a similar finding – Both are hitting their Major Supports in about 200+ pips. I believe this could be a major turnabout. Yet, we cannot ignore the possibility of other risk off events to spur USD from being bullish. The higher probability now is USD has strengthened too much and it is due to risk off event – EU debts. As usual, I believe EU would solve the problem and thus convincing the world that the worse it over. This would be then converted on the charts with USD falling against most risky currencies.
Lets take a look at E/U first.
The red horizontal lines are the supports/resistance I have drawn. Due to limited space, we could not see how the last 2 horizonal red lines at the bottom could be a support/resistance. You can take a look at your chart to confirm these. The first horizontal red line was supporting the currency but the support was shortlived which could be seen by the price action pentrating through the line. Now, we are trapped in between 2 red lines. I have to acknowledge that in any event (expected or unexpected), we would see this pattern to fail. By unexpected, I mean EU suddenly manage to solve their Debt crisis or US suddenly fall into a recession/debt crisis and etc. Nevertheless, 1.29 is now the support (200+ pips south from here). The logical approach now is not to go short in expecting it to go south 200+ but wait n go long at 1.29.
