Last week, several technical indicators seemed to show that the EURUSD had nowhere to go but down. So of course, it went up.
(Weekly EURUSD chart, with last weeks price action in yellow)
Looking at the weekly chart, it all seems so clear. The EURUSD went up. No doubt about it. But during that week, things were not so clear.
(4 hr EURUSD chart, with last weeks price action in yellow)
Price went up, but not before being indecisive several times. Also, we can see the 100 and 200 simple moving averages cross right in the middle of this price action.
Near the end of the week, a lovely head and shoulders pattern appeared on the hourly chart.
Longer term, however, price does appear to still be moving downwards.
(Daily EURUSD chart with 100 and 200 period simple moving averages plotted)
It sure seems like I say that a lot though, which means EURUSD is really still in a consolidation zone between 1.35 and 1.30.
My breakout trading strategy hasn't been working out well, with last week seeing a $60 loss and a $30 win for a total loss of $30. It obviously needs some reviewing and careful attention.
For this week, I will keep a careful eye on this daily chart and the orange trend line, and as always, will be watching other pairs for clues as to where price may be going. It sort of seems like technically, EURUSD is set up for a move south, but the other pairs want to go up, which will probably drag EURUSD higher.
I'll also be keeping an eye out for more consolidation patterns so I can place some trades. I am fast losing hope and heart, but I guess this is one of those things you need to get through to be a Forex trader.
