The German DAX took a rather large knock for the first trading week of the year. Looking at the weekly candle shows a rather powerful move to the South.
My thoughts are that the trend line may act as support and price may begin to oscillate before deciding what to do for the first quarter of this year. I am short on this pair currently, however will add a number of shorts if price can CLOSE below the trend line, which is a significant indicator that price is retracing to a respected Fib level (50% or 38.2%).
Option 2 may be more plausible however we shall have to wait for the markets to open to analyze what this instrument wants to do?
For exciting information on trading and education, I will be launching a new website in the early part of this year, sign up now and receive updates on when this will happen: www.ejfxtrading.com
My thoughts are that the trend line may act as support and price may begin to oscillate before deciding what to do for the first quarter of this year. I am short on this pair currently, however will add a number of shorts if price can CLOSE below the trend line, which is a significant indicator that price is retracing to a respected Fib level (50% or 38.2%).
Option 2 may be more plausible however we shall have to wait for the markets to open to analyze what this instrument wants to do?
For exciting information on trading and education, I will be launching a new website in the early part of this year, sign up now and receive updates on when this will happen: www.ejfxtrading.com
