technical analysis working perfectly so far. here’s a zoom-in of the EUR/USD 4 hr chart (last one) as well as the previous one’s in order. as said a couple of days ago, S1-S3 were minor support levels that i didn’t expect much of a reaction off of and being that we basically sliced thru the first two levels without any consolidation or bounce to alleviate short-term oversold conditions, it is only natural that the EUR/USD bounced pretty hard as soon as it hit T3 a couple of hrs ago. now that it’s bounced back to S2 (support, once broken, now equals resistance) i’d put the odds that the EUR/USD will turn back down soon and therefore, i’m going to scale a little more into some short positions here on the spike in the equities/futures that the EUR/USD bounce off support has sparked.
of course, there are no guarantees that the bounce stops here but i will be using a push over S1 as my stop on this lot (only what i added to this morning). for those adverse to shorting individual stocks, my favorite etf shorts continue to be NUGT (3x long miners) and DRN (3x long reits). i will wait until the first 30 min or so of trading and watch the action before doing anything else.
