EUR 27 July summary

I was asked to comment on EUR's pa on Friday. A trip to the doctor meant no trading in the morning and due to the potential for unforseen jumps if there was more ECB talk decided to leave the US session.

I said in the morning post "At the moment GU and EUR stopped at previous R levels. My methods would normally say today should be a buy day, possible sells due to the R level (and the reason for the move up)."

EUR 1hr had a small shooting star then an engulfing negative close in and around London open. So the potential was for a counter trend sell. Not that I'm saying we would have taken it as D chart was above RSI 50 level with a very strong close on 26th, 4hr was sideways RSI above 50 level.

5 min chart, the blue box shows pa moving above and below the round number. I could not give advice on trading this, I'm not good enough to figure this kind of move on a consistent basis (no 2b, lower high, double top).

The red line left, shows the close of the 1hr shooting star. red line right the close of the engulfing negative candle. The arrows down show potentially 4 lower highs. I thought the 2nd arrow from the right, was the clearest lower high around 11.40 and 1.2265, coming after the 1hr negative close that broke the immediate range. The lower high shown by the arrow on right should probably be avoided IF it was your first trade of the day. Price had moved some 70 odd pips by then counter trend.

When price turned and moved up there were some nice higher lows but the 1hr candles setting them up were not very clean (green body shooting star, red body shooting star) so I really cannot say if they would have been traded. Might have been a frustrating afternoon.