Euro At The Gate

Christmas is only days away and I’m sure you have more urgent things to attend than to stare at charts or talk about them. But for the die-hards amongst you and the 5 Billion non-Christians frequenting this blog I thought I’d throw up a few forex charts, some of which appear to be ripe for the plucking today or tomorrow.

The EUR/USD has been gyrating around its current short term median and we are approaching the point where it either breaks out to the upside or makes another trip toward the bottom of the range. However, pre- and post-Christmas periods are usually rife with low liquidity squeezes and the one scenario I believe has the lowest odds is that it just keeps plugging sideways, especially given how tightly that daily Bollinger has been pinched at this point.

There are two ways to play this, wait for a another push higher which fails to breach the current wall at 1.19 and take out a short position if things start drooping lower. Stop > 1.19 and Bob’s your uncle.

Or be long after a spike low near that 25-hour SMA with a stop below 1.1830. I personally am sticking with the overall trend for now as the bears seem have had their canines removed surgically. But I definitely need to see some kind of floor pattern first, so let’s watch the situation.

The only other chart I find worth watching today are the soybean meal futures (ZM). As you can tell once she gets going she usually trends hard and if you are able to time those gyrations it can be very profitable. Low liquidity on this one however and getting a good fill sometimes takes a bit of patience/stubbornness. Anyway, it approaching the ole’ 100-day and looks like she may at least be faking to paint a floor pattern. Possible entry opportunity but not just yet as things are still a bit too premature. It’s a chart I plan on revisiting on my end however during the holidays and so should you.

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