Dollar continues its beatdown session
November 7, 2005 by Trader Rich
The dollar continues to dominate the euro although my position closed this morning when the price hit 1.1775. It definately pays to follow the trend. Since doing so a couple of weeks ago, I’ve been much better off.
I’m kind of stuck on what to do next with this pair. I don’t know how much more of a beating the euro can take. What I will continue to do though is watch the 1.1774 support line (50% fibonacci from November 2002 low, December 2004 high) and if it is broken, I’d expect the pair to go to retrace furthur to the 61.8% fibonacci at 1.1375.
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Keep to the trend … if one were to attempt to call a bottom near here then any break of 1.1774 ought to ring alarm bells. Obvious stops for the more aggressive trader would have to sit below 1.1774, avoiding a possible spike low … Meanwhile, there is a clear channel that the Euro is trading below giving perhaps the opportunity for at least a break back into this before going long.
http://putfile.com/pic.php?pic=11/31010372941.jpg&s=x11
Keep to the trend … if one were to attempt to call a bottom near here then any break of 1.1774 ought to ring alarm bells. Obvious stops for the more aggressive trader would have to sit below 1.1774, avoiding a possible spike low … Meanwhile, there is a clear channel that the Euro is trading below giving perhaps the opportunity for at least a break back into this before going long.
http://putfile.com/pic.php?pic=11/31010372941.jpg&s=x11