Indeed my friend...I don't detail it as much in my charts, but I think making up a story in the charts is vital.
TheShakeOut
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Agreed. Markets move by supply and demand. No matter what strategy you use to trade, understanding the imbalances of supply and demand will help you put the odds on your favor.
TheShakeOut
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IvanLabrie, are you long the euro already?
IvanLabrie
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I tried eurgbp long to balance my exposure to gbpjpy shorts.
I also have an eurcad long, based on the premise that crude is about to fall, which come from my technical analysis of multiple markets.
I did short usdchf, which is somewhat correlated.
TheShakeOut
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Good. It seems like you got it under control. The USD is showing weakness against the EUR, GBP, JPY, CAD and even Gold. Therefore, shorting USD short term, seems to be the best option.
IvanLabrie
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I perform a very detailed intermarket analysis to decide on which trades to take, based on potential and lower exposure to risk.
Very nice chart btw, this is how you perform technical analysis.
TheShakeOut
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Thank you. I use this very detailed analysis on the daily chart, on smaller time frames I do not need to have so many details.
I have seen on your analysis that you do not usually have volume. Do you use it?
Thank you HiTech. My analysis suggests a bounce up on the Euro is likely, but I did not recommended swing long positions. There is still supply present and we have to wait for a clear confirmation before making commitments. Right now, at 10am GMT, the market has failed to test on no supply at the top of yesterday's bar and it has fallen to 1.0580 in the Forex market.
There is going to be interesting activity between 1.0580 and 1.0520, the choppy area on the bottom of your chart, before yesterday's spike up. If it shows confirmed signs of weakness it will most likely go to your target and even lower. If it fails to do so, be cautious because we could have a new leg up to the top of the channel on your chart. Good luck!