Hi guys, the short term barometer (top chart) has an 'unnatural' pattern. I've see this before. After a quick push like this, the market usually snaps back in the other direct. These pushes are usually quick with very little consolidation. Just like now.
On the long term (lower chart): the EUR and AUD are over extended in opposite directions. The EUR is definitely over-sold. The Bears are no doubt pilling on right now, but I've seen this before too. Later today, when the Bear rally reverses, everyone will scratch their heads and wonder why. We'll see if I'm right :D
This is not investment advice, just my opinion(s). Please trade accordingly.
looks like EURJPY is due for a big turn. if i remember what happened last time the barometer looked this way. didnt realize EJ went that far so fast wow
@riffster21, btw im using 118.51 ish as my turn around for EURJPY seems to fall inline with previous trend lines. dude this barometer is awesome
riffster21
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@steveb4088, I hope you were still in your EURJPY when that spike happened? lol...
steveb4088
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@riffster21, i was but my take profit was a little too conservative and i fell asleep lol dang
riffster21
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@steveb4088, Yeah, nobody expected those moves to be so sudden.
steveb4088
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@riffster21, ahh probably not but you did warn that it would be fast. bro that was a good trade thank you. cant wait for the next one
riffster21
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@steveb4088, Although, I have found that the 'dual' extended pairs (i.e. pairs with a currency over extended on both sides of the barometer) are usually the worst pair to trade. They usually consolidate sideways and do not provide a pullback. The reason (I think) is when pairs go outside their daily fib range, they stay there. They do not retrace.