European
STUMBLING THE EUR/USD LEGS - long term, by the monthLet's look at the really big picture again on the EUR/USD- the MONTHLY chart (log scale).
Note: this is of course NOT suitable for trading. Beware.
Usage:
- protecting your savings (by going into USD)
- determining the overall trend (which pressure prevails, when going down to lower time frames?)
- as well as determining important support & resistance levels we might otherwise forget about.
Concluding: continued downside pressure is what you'd be looking for,, the current frenzy in EURUSD is NOT changing that at all.
When trading the shorter swings, positions to the downside should be taken around 1.12 / 1.19 (if it ever gets that far). I am convinced the latter level won't be breached after this Fed day, setting us up for the next long term leg down towards parity. By then.... a positive RSI divergence might be giving a screaming buy - but we're far from that.
FYI: I've been pulling my EUR assets into USD assets. Long term, I mean - not relating to trading. This is not going to end well in the long run...
CAC 40 continuation pattern awaiting validation!!CAC 40 has seen some profit taking over the past couple of weeks and has formed an inverse H & S continuation pattern that is awaiting validation. A successful break and consecutive 2hr closes above 5104 could see the CAC head towards its measured target of 5277. Failure to validate the pattern and break below 5k is a bearish development that should see continued losses towards 4932 and potentially 4856. Holding a long view currently as long as 5k holds.
CAC40, the tricky index of the WeekIt was interesting to observe CAC40 this week. Despite the move down of DAX30, DJI, SP500, NSDQ, event Eurostoxx, CAC40 try to stick upside at a range between 44500 and 4500. MACD shows that there is no momentum, no more steam to keep CAC40 that high up. But STOCH shows that there is a try to keep it up at 4500 as if this range would be a proof of a healthy French economy which by the way is not the case. Keeping in mind that there are European Parliament elections in France on May25, I may think that CAC40 is artificially high, hold that high by French banks in order to limit the effect this could have on Front Nationale. I think that after May 25, and with the outcome of the French EP elections, CAC40 would loose serious ground.... Let's see....
