From the New York Stock Exchange, Invest Diva takes you through a technical analysis of a currency pair dancing on the forex dance floor; a metaphor we use which refers to the trading chart. We like to think that the currency pairs are making history by their dancing moves.
The pick of the day is EUR/USD, which completed the 6-hour Elliott wave cycle we mentioned last week, and earned us around 200 pips (Ka-ching!)
Now taking a look at the daily dance floor, with the US dollar strengthening on Ben Bernanke’s last Fed meeting yesterday, the Euro has been dropping drastically. Breaking Mr. Fibonacci’s 50%, it is moving rapidly towards the 61% level at 1.35126. Reaching out to my Forex beauty kit (another Invest Diva metaphor) and throwing in the RSI, there is still no sign of the pair being oversold so we could see it dance all the way to the 61% Fibo level. But will this level hold? We shall wait and see and only place a trade once it is confirmed.
Stay tuned for more technical updates and don’t forget to check in with the fundamental news and market sentiment as well, before you make a final trading decision!
