Corrections versus Reversals: A look at today’s EUR/USD move

The EUR/USD’s rally today was a correction of the overall downtrend that can seen on the daily chart. This trend view from the daily is the most psychologically relevant opinion and therefore the most dominant view of the pair – regardless of today’s intraday move higher.

No doubt it has been a series of strong sessions that has carried the pair to what I see as an opportunity to enter a trend-following short.

in this video I explain the Dow Jones Industrial Average and U.S. Dollar Index’s role in how I see this short entry playing out; not to mention of course the downtrend that is still intact on the EUR/USD.

  • Irving Verzijl

    Agree regarding the EURUSD, but will wait untill the H4 timeframe will confirm to enter short.

  • Digitalgypsy5720

    Thank you very much for clearing up my doubt about this!!!  Very much appreciated :-)  Peace

  • Nick

    The pair hit 1.38 today. At which point is this upward movement not consider a reversal? 1.4, 1.45 or 1.5.I  Agree that fundamentally, euro is bearish but so is the USD. So at any point, if there is new development on the US side (Say QE3?),the pair might “correct” itself in a much stronger manner. The Euro woe have been around for almost 2-3 years now, and market have been reacting according to  pieces of news every 2-3 days. We have been hearing about Greece default, woe spreading to Italy,Spain…etc ,But each time, some piece of news will push the euro up a couple hundreds of pips upwards. I think it is more profitable to look at trade on a short term trend instead of waiting for the big one (Greece default?).The past few session is bullish for the euro so trade on this basis on a daily basis until another piece of negative news emerges. Make money buying and selling instead of waiting to sell when the “default” come true.

  • Guest

    long from 1.33 and targeting 1.38

  • Quest

    The pair has now broken the previous resistance at 1.3834…. how much longer then until the “correction” comes to an end?

  • Adam (Slainye)

    Love your work babe! Thanks for this video! Adam