You've got to love the higher time-frames. If the Yellow trendlines in thi chart do not make complete sense to you, I invite you to pull the 12M time-frame chart.
Last year, this market broke out above a 36 year, neat, downward sloping trendline.
It ended up the year retracing back close to the demand zone form where the breakout erupted. And it is now trading against the 50 EMA in the Monthly time frame, while kissing a zone where the bulls are expected to spet in this market.
What does this mean?
That the future is auspicious and bullish for the USDEUR? Nope, nobody know the future.
What then?
Try instead: the price is trading in an area where some deep pocket central bank has recently thought it was cheap to buy and fuel a massive rally. Unless that central bank's world perspective has abruptly changed, what do you think they will think when they see the price at this range again?
Perhaps this is a good area for one to look for bullish set ups.
Last year, this market broke out above a 36 year, neat, downward sloping trendline.
It ended up the year retracing back close to the demand zone form where the breakout erupted. And it is now trading against the 50 EMA in the Monthly time frame, while kissing a zone where the bulls are expected to spet in this market.
What does this mean?
That the future is auspicious and bullish for the USDEUR? Nope, nobody know the future.
What then?
Try instead: the price is trading in an area where some deep pocket central bank has recently thought it was cheap to buy and fuel a massive rally. Unless that central bank's world perspective has abruptly changed, what do you think they will think when they see the price at this range again?
Perhaps this is a good area for one to look for bullish set ups.
