About Chartology

With "Chartology", you'll be sitting in the front row as I discuss price action analysis, market cycles, chart pattern setups, optimal trading time and volatility analysis, as well as the psychology behind price action. Put these tools together and you're looking at how to begin mastering the charts. In fact, be sure to watch the "Your Forex Questions Answered" video here.

Every day, occasionally more often, I'll additionally discuss order entry, U.S. Dollar Index, crude oil, gold, and the Dow. Forex trading allows and requires a viewpoint that goes beyond simply analyzing the pairs. I'll explain in detail how I scan for trades — I call it "triage" — how I set up trades proactively, and how I manage entries and risk. Trading isn't all that diffcult but the process of finding your tools and approach and trusting them is. So here's your front row in my trading office, thanks for reading, let's get going!

Who is Queen Cleopiptra?

Raghee Horner is a private trader, founder of EZ2Trade Software, entrepreneur, and author. She has been trading forex, as well as futures and stocks for almost twenty years. She is a regular contributor at a number of sites including FXStreet, Trading Markets, Autochartist, eSignal and a featured speaker at the Forex and Traders Expos. Her commentary and analysis is seen daily by thousands of traders at her personal blog ragheehorner.com. She has written articles for Technical Analysis of Stocks and Commodities, Currency Trader, Your Trading Edge, and Traders Journal magazine.

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February 2010

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Does the uptrend on the EUR/USD have enough to rally through 1.3800?

Posted 07:18 10 February 2010 | Comments

The EUR/USD (aka the "fiber") has been rallying across the intraday time frames of the 15, 30, and 60 minute charts. The bounce from 1.3600 (the low was actually 1.3582) has been significant enough to even level the 240 minute chart to the beginning stages of accumulation (sideways market) after a sustained downtrend from 1.4600.

Now the question must be: Does the EUR/USD have enough buying momentum to rally through the 1.3800 psychological level?

The mark up cycle on the 15, 30, and 60 minute chart is far from strong as there have been multiple attempts at the 1.3800 level.

This zoomed in view shows the rejections highs from left to right at 1.3813, 1.3838, 1.3798, 1.3801, 1.3806, 1.3807, 1.3811. So evidently it's not an issue of whether the market can pierce the "00" but rather whether there is enough buying support to sustain it -- which currently there is not.

Some of the surrounding factors right now to consider are the "market pulse" charts of the Dow which is up 28 and the U.S. Dollar Index which is down .032. A stronger equities pre-market should support the EUR/USD and a strong open would most certainly push the U.S. Dollar Index lower and rally the EUR/USD through 1.3800.

Since Bernanke's statement is to be read today and not presented by him due to weather restricted travel issues, the market's reaction could be uncertain. The statement will say everything he would BUT will there be the same psychological impact? It's to be seen...

The 240 minute chart has formed a falling wedge pattern and the downtrend line of the pattern is of particular interest to me since a break of that would not only be a 1.3800 break but also a breakout and arguably a reversal of the previous downtrend (mark down) cycle.