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eur / usd monday update

12/13/2010

The euro finally broke above the 4 hour trendline I highlighted last week, (and took some good shorts off of) should we return to looking at short term long setups, or is this just a better area to sell? (that depends on your trading style.) Notice, we also broke that “potential” bull flag I mentioned last week, and we have finally moved significantly above all three hourly moving averages. If you’re playing this long, look for resistance off the previous hourly highs, the appropriate (and not drawn) short term fibos. (and also potentially the 100 day sma – though, i use the ma’s more to indicate direction, not as much for support and resistance, but that’s just me)

Before getting all bulled up though, ask yourself if anything has substantially changed in the eurozone, or if we’re just coming up on Christmas (Kwanzaa, Hanukkah, winter solstice and whatever other hollidays those heathens believe in. 🙂

On the short side, however, this is December and we are probably in for lengthier consolidation without any real directional conviction. Either way, I missed the initial break higher last night – and am not trading heavy in December, so wait for a good setup or pullback before entering. Last pips are the most expensive.

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