Since then we gained appr. 100 pips today. Should we be happy and close it? Oh c'mon, of course not! That's what daytrader and piphunter and scalper whatever guys may do, but not trendfollowers. We just trail the stops a bit lower and wait. Wait and with one step back, now we examine the bigger strategic picture again!
Yellen and Dovish FED clearly did not manage to get USD smashed. Why? Because risk aversion in EUR starts to accelerate, given theincreasing high probability of a #Brexit indeed happening soon. As I wrote in my EUR complex post, the common ccy may come under serious pressure.
- Price is approaching Bulls' last hope zone (supp/res) between 1,1125-1,1160, where we have Kijun Sen, minor uptrend line and Senkou B! Please not that market right now is already trading below 1,1200 weekly 100WMA.
- If we close down here (ard or below 1,1200), we'll have a clear weekly Heikin-Ashi signal.
- EWO is decreasing further
- setup is one step closer to . Confirmation would be below 1,1100
- Heikin-Ashi shows increasing bias! -> see haDelta
- EWO down to bearish!
- and prev. low is in danger
You chose! Get scared, or act and get short?
Good luck guys! And follow me on Twitter!
p.s.: I hope I don't want to tell you what a collapsing EURUSD (stronger USD) will finally cause to Equity markets? Stronger USD would be practically equal to a monetary tightenning! Difference is it's not caused by shitty FED rate hike, but FX markets.
If you have any time, please read again all my recent Nasdaq100 posts!
Sell all risky assets!