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EUR/USD Technical Analysis October 19, 2011

By:
Christopher Lewis
Updated: Jan 1, 2011, 00:00 UTC

EUR/USD had an absolutely wild day during the Tuesday session as the market originally sold it off, and hard – only to turn it around in the late hours of

EUR/USD Technical Analysis October 19, 2011

EUR/USD had an absolutely wild day during the Tuesday session as the market originally sold it off, and hard – only to turn it around in the late hours of the NY session. After that came another bit of a selloff, resulting in a long-legged doji for the daily candle.

The China GDP numbers missing slightly spooked the markets and the EUR/USD sold off as a result. The late hours in New York saw a story that stated the Germans and French had reached an agreement to increase the EFSF to over 2 Trillion Euros, and that the banks would be recapitalized. This turned out to be overblown, and the market fell again. The Tuesday session did show one thing though: There is serious concern about Europe still.

The set up is easy though: A breaking of either end of the doji trades in the same direction. If we break to the upside – it becomes a buy. Alternately, if it breaks to the downside – it is a sell. Either way, this pair will remain hostage to the headlines that will certainly continue to come out of the EU.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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