November 7, 2012
- in Uncategorized by schooloftrade
Euro Currency Futures:
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| Dollar Index anchor Chart |
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| Euro Currency Futures Anchor Chart |
We start
with the review of the Dollar-Index. The
negative correlation between the Euro and the Dollar-Index is negative and VERY
important.
with the review of the Dollar-Index. The
negative correlation between the Euro and the Dollar-Index is negative and VERY
important.
The Dollar-Index
is rising higher, apparently reacting bullishly to the election in the US and the
news from Germany in Europe. With the Dollar-Index
moving higher the euro is likely to fall lower.
is rising higher, apparently reacting bullishly to the election in the US and the
news from Germany in Europe. With the Dollar-Index
moving higher the euro is likely to fall lower.
We can see a
bull price-channel and a bull price-wedge and we are trading at the LOWS of
this price-wedge. We can see trigger-zone
support below us.
bull price-channel and a bull price-wedge and we are trading at the LOWS of
this price-wedge. We can see trigger-zone
support below us.
Our day
trading strategy for the euro is to buy-the-lows at support of this price-channel
and price-wedge. We will use the Dollar-Index
correlation to make educated decisions, which means the Dollar-Index rising
will make this buying opportunity very difficult. We want to see the Dollar-Index to fall off
the current highs so that we can buy the lows of the price-channel on the euro.
trading strategy for the euro is to buy-the-lows at support of this price-channel
and price-wedge. We will use the Dollar-Index
correlation to make educated decisions, which means the Dollar-Index rising
will make this buying opportunity very difficult. We want to see the Dollar-Index to fall off
the current highs so that we can buy the lows of the price-channel on the euro.
