24 Hours And Things Are Completely Different
Yesterday’s worse-than-expected Consumer Confidence Number put pressure on
the Dollar and our markets. On Monday night it looked as though the major
currencies may break their 50 EMA. Today it now appears that the trends are
still intact, and once again, something as simple and commonplace as a moving
average keeps things in check. So now what? Let’s take a look at the charts and
make some observations:
These are classic pullback-to-support patterns. Each of these charts
represent reasonable entries from a Position Trade standpoint (several
days to several weeks in duration). While I may in fact take these trades, I am
more inclined to drill down a few timeframes and do more of a Swing Trade
in order to maximize some shorter-term movements. The charts below of the
GBP and EUR
show some areas that I suspect will provide some support and potential entry for
a move higher.
Alan Greenspan’s testimony today on the state of the economy should provide
some commentary that will likely get both the equity and FX markets moving.
As always, feel free to send me your comments and questions.
Dave