EUR makes gains.Retracement or Reversal? (08/08/2014)

The Euro which has been under a constant down trend has demonstrated some significant gains. Are those gains a temporary retracement and an opportunitiy to sell Euro or the start of a trend reversal. We monitor the Euro and wait for an opportunity to sell.

After performing a quick scan of the markets using the Trend/Wave/Extreme under the 4 Hour timeframe we can see that the EUR pairs are showing a possitive Up Wave. This implies that the short term direction is up. In some cases such as (EURAUD,EURGBP) the trend is also up.  We will focus on the EURUSD and EURJPY that are still under a downtrend and wait for sell opportunities.

twx  20140808

 

 

EURUSD (H4) SeEURUSD 20140808ll

 

The  Trend/Wave/Extreme mini view indicator is showing us

  • Trend bar is Down Red filled pointing Down Trend
  • Extremes bar is Up Green filled pointing the pair is becoming overbought
  • A solid down trend line chart pattern
  • It has exhibited so far a 70 pips upward correction

*Note: The pair is still in correction mode so wait for two consecutive candles prior to selling as it possible to move higher prior to dropping.

EURJPY (H4) Sell

EURJPY 20140808

The  Trend/Wave/Extreme mini view indicator is showing us

  • Trend bar is Down Red filled pointing Down Trend
  • Wave bar is Up showing that the pair is in correction mode
  • A solid down trend line chart pattern
  • It has exhibited so far an 80 pips upward correction

*Note: The pair is still in correction mode and not overbought so wait for two consecutive candles prior to selling as it possible to move higher prior to dropping.

Read about the Trend/Wave/Extreme system here

The following is an analysis of the currency markets using the Trend/Wave/Extreme system . You can read about the system here. Please read our Risk Disclosure and Terms of Use  prior to making a trade using this information.