Euro Breaks 61.8% Point On Long Term

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By Benny Nardino | April 27, 2006

I have noticed a turning tide in the last few days on the EUR/USD. which was very visible a couple of year ago when the EURO hit all-time high.

From the chart you would noticed that the tweezer-top that was completed in Feb. 2004 @1.2950 bottomed-out in May @1.1772 of the same year. The acceleration that happened after that took the market to an all-time high 1.3670.

The interesting thing about this is that, the same cycle has flagged up again setting up a high probability play for traders. What alerted me was the fact that the 61.8 was broken on the upside in my Fib analysis on Fig. 1.

Seasoned traders would tell you that the first rule of engagement in forex is to know your market. Unlike stocks and futures market which deals with the micro economic factors Forex uses macro economics and this plays out over time. With the geopolitical factors and spike in the oil prices especially the Iranian troubles, it will not suprise me to see the height of Dec. 2004 reached again. Further indicators have also shown a bullish move.

However, if you intend to play do this cautiously as I would because there are some other factors that may affect your trades on a daily bases. The longer term prospect certainly looks up.

I thank you for your time. Keep your interests alive by your comments on this page.

Happy Trading today

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“A Mentor’s footprint is worth a thousand walk of trailblazing. Seek the WISDOM of the fore-runners.” — Benny

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