EURUSD In Position to Shift Weekly Trend
The Fibonacci .618 couldn’t do it, the Gann .625 either, but the old school Dow Theory 66% may be able to cap the 7-month rally in EURUSD. Following last week’s doji and the indecision it reflects, and this week’s pull-back which is threatening to change the direction on the weekly chart, tomorrow’s price action following the U.S. non-farm payroll number becomes all the more important. The 145-00 level should prove plenty pivotal with a close below that point defining the weekly trend going forward. What’s significant about Dow Theory is that it leaves room for a retracement of up to 66% before a primary trend is compromised.
AUDUSD’s price action raised eyebrow’s today with a key reversal on the daily chart which left this market, the leader of the anti-Greenback crowd, in a position to challenge its current 7-month up-trend. A close below approx 85.90 would be needed to change the current direction on the Weekly chart to lower.
Jay Norris
jnorris@brewerinvestmentgroup.com
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That is a significant observance about the Dow theory and the 66% retracement level.
Being made aware of Gann Lines, and now the Dow Theory makes the “trading” business so interesting and dynamic! There is never a dull moment. A trader should not fall asleep at the help and with many valid studies at hand he/she should be kept wide awake. And with Jay keeping us in the picture, certain success is likely to follow. Many Thanks Jay.
…Text error above sorry…..It should read
“A trader should not fall asleep at the helm…not help….lol…Cheers