Wednesday, December 2, 2015

IB Traders Insight | Interactive Brokers

IB Traders Insight | Interactive Brokers: "EURUSD Edging Past Daily Chart Downchannel Resistance Ahead of ECB
The EURUSD formed a potential reversal daily Hammer yesterday as some shortsellers began covering their positions ahead of the highly anticipated ECB rate decision and announcement on whether QE increases.  The EURUSD remains within a downchannel (on the 4hr chart), but appears to have broken above downchannel resistance (on the daily chart) and is testing descending wedge resistance (on the weekly chart).  Although weekly and daily RSI and Stochastic appear bottomish, the weekly MACD is still sloping down.  Nevertheless, for short-term traders, with today's ECB and tomorrow's NFP, a potential multi-day rally could be of interest, especially if the EURUSD can break above downchannel resistance (on the 4hr chart).  I am flat the EURUSD now and will revaluate the technicals following the ECB announcements today at 745am and 830am EST, keeping in mind that any market movement will be tempered ahead of Janet Yellen's speech and US ISM Non-Manufacturing PMI at 10am EST."



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