Monday Morning Movers… Dollar bounce/Euro decline due because of key Fibonacci levels?

Last Monday morning I started a new series called “Monday Morning Movers“…attempting to find keys to what could have a large impact on the upcoming week. Last Monday morning it looked like the Dollar was signaling weakness, due to a rather large bearish wick at Fibonacci resistance the week before, which was suggesting that risk assets should do well. (see post here)

Per the chart below, it appears the currencies are being impacted again by Fibonacci, this time though it appears in the opposite direction.

CLICK ON CHART TO ENLARGE

The above chart was made pre-market this morning, so the day is long from over with and it could look a ton different 6 hours from now! At this time though the Dollar is back at its 23% Fibonacci support level and the Euro looks to be testing resistance at its 50% Fibonacci level.

Risk trade assets have done well over the past 10 business days and the currency situation right now is suggesting caution when it comes to owning risk assets in the short-term.

7 Comments

Chris Kimble on 10/18/2011 at 4:33 AM

Aaron….In the comments of the Gold post last week I shared members own ZSL. (See post/comment here)

Anytime Gold or Silver hits key resistance, we will be shorting Silver, via owning ZSL.

Chris

stemphos on 10/17/2011 at 9:09 PM

Chris,

It looks like ZSL may hold at 1344. Is it time to buy?

Thanks,
Aaron

Chris Kimble on 10/17/2011 at 1:53 PM

Stemphos…Don’t think so in the bigger picture.

stemphos on 10/17/2011 at 12:14 PM

Chris,

Is 1204 a support level as well?

Thanks,
Aaron

Luke81 on 10/17/2011 at 10:11 AM

Hi Chris

we’re getting a seriuos break of support in the euro, just like you expected. Based on experience, if tomorrow is a an “up” day, and the euro climbs back to kiss resistence, would THAT be the best spot to go short?

I’m looking for a way to get into positions and be immediatly profitable, in my experience buying the break of a rising trendline is not the best thing, one can generally get a better price by just waiting one day or two…

Wuold like to know your approach to this.

Thank you

stemphos on 10/17/2011 at 9:50 AM

Hi Chris,

I second Piotrek’s comment.

Where do you see support taking place in the S & P. IS it 1172 (50 d SMA)?

Thanks,
Aaron

Piotrek on 10/17/2011 at 8:23 AM

Hi Chris
You are doing an excellent job with these charts. Hats off to you.
Regards from Poland

Chris Kimble on 10/18/2011 at 4:33 AM

Aaron….In the comments of the Gold post last week I shared members own ZSL. (See post/comment here)

Anytime Gold or Silver hits key resistance, we will be shorting Silver, via owning ZSL.

Chris
stemphos on 10/17/2011 at 9:09 PM

Chris,

It looks like ZSL may hold at 1344. Is it time to buy?

Thanks,
Aaron
Chris Kimble on 10/17/2011 at 1:53 PM

Stemphos…Don’t think so in the bigger picture.

C
stemphos on 10/17/2011 at 12:14 PM

Chris,

Is 1204 a support level as well?

Thanks,
Aaron
Luke81 on 10/17/2011 at 10:11 AM

Hi Chris

we’re getting a seriuos break of support in the euro, just like you expected. Based on experience, if tomorrow is a an “up” day, and the euro climbs back to kiss resistence, would THAT be the best spot to go short?

I’m looking for a way to get into positions and be immediatly profitable, in my experience buying the break of a rising trendline is not the best thing, one can generally get a better price by just waiting one day or two…

Wuold like to know your approach to this.

Thank you
stemphos on 10/17/2011 at 9:50 AM

Hi Chris,

I second Piotrek’s comment.

Where do you see support taking place in the S & P. IS it 1172 (50 d SMA)?

Thanks,
Aaron
Piotrek on 10/17/2011 at 8:23 AM

Hi Chris
You are doing an excellent job with these charts. Hats off to you.
Regards from Poland

Monday Morning Movers… Dollar bounce/Euro decline due because of key Fibonacci levels?

7 Comments

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