Analysis for August 21st, 2014
EUR USD, “Euro vs US Dollar”
Euro successfully reached its first target at the 1/8 level. We could make the final point here and close all short positions, but I’m planning to keep my orders with the target at the 0/8 level as long as the price is moving below the H4 Super Trend.
As we can see at the H1 chart, the price rebounded from the 2/8 level, which also means that the market may start a new descending movement, although reverses hardly ever occur here. If later bears pull themselves together to rebound from the 3/8 level and the pair stays below H1 Super Trend, I’m planning to open another long position.
XAG USD, “Silver vs US Dollar”
Meanwhile, Silver continues its victorious movement towards the target at the 0/8 level. Bears are supported by H4 Super Trend as the price reaches a new low each time it rebounds from the indicator’s line. On Thursday, I raised the number of my sell orders to four; the stop loss for all orders is already with quite a good profit for the position.
The H1 chart also indicates that the 0/8 level may be the final target of the current downtrend. Right now, the question is: can sellers keep the price below the 3/8 level? If they succeed, the possibility of reaching the 0/8 level will increase significantly. However, if bears aren’t strong enough to break the 1/8 level, the market may start a new correction.
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