EURUSD Finds Resistance at Top of “Pipe”
With traders anticipating resistance at the approximate .625 level of the ’08 bear move it became self fulfilling that EURUSD would first reach, and then pause at that level. See: http://trading-u.com/blog/index.php/archives/774
The question now is will it retreat and test the 50% level at approx 141.75 which is also the current 2-week low set on 9/1. The ATR, or Average True Range, which serves as a measure of volatility, or the rate of change in price over time, continues to drop despite the spike up to that 146.30 level, which may support sideways trade and a counter-trend sell-off back toward the 9/1 low.
As analysts and traders we don’t want to anticpate where price will go to next as much as we want to go along with it. However it will be interesting to see if price behaves the same way which Gann described over 60 years ago, and rotates back and forth between the .375 level and the .625 level, an area which he called “The Pipe”
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