EUR/USD Play?

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PaulRon

How low can the EUR/USD go? This move is really surprising to me, looked like it was on the cusp of breakout to the upside and it just plummeted.. anyone have anything insightful to add?
 
There was a large MACD divergence before the break that had me short the euro. I was a little early but held on and it paid off. It looks now like it has completely rolled over. It might be time to short oil, gold, and the euro and buy equities.

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Quote from PaulRon:

How low can the EUR/USD go? This move is really surprising to me, looked like it was on the cusp of breakout to the upside and it just plummeted.. anyone have anything insightful to add?
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Friday's close was @ a support level, and I'm thinking a small bounce here or my next lower target level of 1.5315 which is about 100 pips lower

I have personal targets in order of 1.5315; 1.5084 and 1.4855. The last has more support long term than the others. I'll be watching these levels for a change.
 
The pair is flirting with an area of support around 1.5348 on the daily chart. If it breaks through this support, I don't see it stopping until the next major area of support around 1.5000, about 350 pips south of where it's at now. If it breaks down, should be a good selling opportunity. Hopefully this adds some perspective to anyone looking primarily at shorter timeframes.

I've posted the chart here...
http://www.tradinggroove.com/post/2008/05/Significant-Areas-on-EURUSD-Daily-Chart.aspx

Good trading,

JEB
 
1.5145-50 is a major support area. If it breaks below then we could realistically see 1.4850-.4950. Momentum is really bearish right now also.
 

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Quote from harkm:

might be time to short oil, gold, and the euro and buy equities.
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I'm with you. Except I wouldn't short gold as much, it's already had a 12-14% drawdown in the last two months. Oil, however, is ridiculous. Someone needs to pop that bubble.
 
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