EUR avoid weak pre/early US candles

We have commented several times on the idea of avoiding weak (counter days trend) pre/early US session candles. Another example today, see the x on 1hr chart.

COT by Ralph Shell

See the link to the COT report by Ralph Shell and go to the articles - Speculators Flip to Short Side of USD-COT Report 08 28 2012 Reveals Data. 

That's a collective position. The big boys are still short EUR but that position is being reduced. If they are reducing their short positions on dips in rallies then that gives a clue as to direction.

Autochartist at vantagefx.com

Autochartist highlighting USDCAD today, see the link available with vantagefx.com live accounts.

EUR GU 4 Sep

GU and EUR charts are essentially showing the same position. D higher high higher low flows in tact. Upper resistance levels being hit. Whilst the reaction to the upper R levels remains to be seen bias up.

Autochartist at vantagefx.com

Today USDJPY is highlighted, see the links to get autochartist free with Vantagefx live accounts.

GU EUR 3 Sept

With the US holiday and Draghi speaking early in US session care would be needed around that time.

GU - Would expect upside today but there is last weeks high at 1.5900 that could cause a sell off.

EUR - The strong rejection of the break above 1.2600 did not follow through lower. I would expect the highs to be tested again.

Due to the recent moves up or down any intra day higher lows or lower highs can be considered as trades. For moves up both currencies have their D pivots and W pivots as bases. For sells both currencies have upper resistance levels. Bias up today.

EUR GU 31 Aug 1hr higher low flow

Whilst we had sell bias for Friday due to the D lower highs the support levels always gave the opportunity for a move up. We generally prefer multiple reasons for an entry.

On the EUR we had a support level, 4hr signaled up during Asian session, going into London we had a buy signal with 1hr higher low breaking the lower high lower low flow from the previous two days.

 On GU the lower trend line, support level held.