The last week of March saw the EURUSD make a big leap on Monday, then stagger around in a seemly drunkenly fashion for the rest of the week, stalling slightly below the high it made on Monday.
I was confounded and confused until I realized I could fit a nice bullish trend-line on my chart, and EURUSD had bounced off it on Thursday.
(60 minute EURUSD chart with resistance line in blue and trend line)
So much for the bearish interpretation of various indicators I made a couple of weeks ago, this thing is still heading north, assuming it can push through the blue resistance line.
Assuming it is still going up, where is it going? A while ago I theorized that EURUSD might be retracting from a big bearish move from Oct 2011 to Jan 2012.
(Daily EURUSD chart with fibonaci retracement lines)
So, without spending more hours trying fibonacci lines all over the place trying to fit, I have no idea what's going on, at least on the daily time frame.
Yesterday when playing around with the Metatrader 4 tools, I found that the linear regression channel tool snaps to various highs and lows. I didn't know that before - I assumed it was similar to the equidistant channel tool.
Anyway, this is very useful, as it formed a pretty channel with very little effort:
(60 minute EURUSD chart with resistance line in blue and linear regression channel)
Here we can see the latest short term bullish EURUSD move, fitting beautifully into this channel.
Since it took me so long to find, this pattern may be almost finished. But that's OK, as now I can look for channel breaks, selling below the lower channel line or buying above the upper channel line. We'll see what happens.
