What happened EUR/USD on 16 Jan?

[mp6140]

Someone wanted to know about the LRC's, that I attached 2 year/weekly chart, showing a DEFINITE DOWNTREND SINCE NOVEMBER, coupled with my one month chart above, showing a dbl top on GU.

Notice the white and red channels the currency was running in, with the white slightly downwards in the red --- easily seen is where the WHITE channel was broken to the downside, and where it halted at the RED (main LRC CHANNEL) at support of 1.9483

at this point, we wait for confirmation of a bounce, sideways or continued downward move, although indicators are tending towards a bounce !

When doing longer term trades, using the one or more year/weekly charts eliminates tremendous noise, although you WILL get very large drawdowns because of the Long timeframe being used, so exercise very good money management techniques !

enjoy and trade well

mp

Prior to the fall, the daily chart was showing a double top chart pattern, extensive resistance between 14870 and 14900+ and bearish regular momentum divergence. In other words, the chart was telling you that there was a good probability of a retracement back to support rather than piercing through the resistance zone.

 

[mp6140]

When I was actually working years ago and not trading (which is NOT work, imo) I was fortunate enough to spend most of the winter in LA or Florida, Bahamas and Dominican Republic as part of the job ---- Hate being retired !!

I extend my envy in your general direction, which i presume is SOUTH !

hate you

mp

Me?! I'm just a pom with the brains to get out the floods and into the blazing sunshine 6 months a year!