Archive for the ‘Trade’ Category

To understand the technical scenario, accompanied by a weekly chart of the Euro since the beginning, back in 1999. Assuming that the graphics, as a faithful reflection of the reality of prices, never cheat, at a glance we can see the historical situation of crossing EUR / USD and more or less clearly foresee the MTO.

Since its launch in 1999 (earlier data form the synthetic historical change provided by the DEM / USD) in the environment of 1.14, the Euro did not stop losing value against the dollar, bottoming out in October 2000 to change a slightly above 0.82. At that time, 28% lost value against the initial change of release. But it was all about to change.

Since the minimum in the 0.82, the single currency began to climb unstoppable while vertical, between 2002 and 2003 (when parity was broken again in favor of the Euro). In the chart, and we draw the main bullish channel (formed between June 2001 and February 2002) and up to two lines of extension of the channel. So that we understand, a line of projection of the channel (3 lines) is still considered a normal range, reaching a fourth line is considered an extreme movement and passing it is a clear movement of aberration, which, as a rule, brings a movement equally extreme reaction to very strong.

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