There is a yellow line located at the resist point at 1.18372 that was where I averaged some portions of the short sale and I covered above 1.17. It is a milestone in measuring out the magnitude of this drop in EUR/USD. Before I mentioned three important support levels and when they become violated the demand for euros goes up, and today's price action overtook the lows on August 9th and 10th.
There are many things that can happen tomorrow the dollar index FOMC minutes coming out.
Here I wanted to display the daily view and show how the length of the candlestick bodies are getting longer (red ones) and the lows are getting progressively lower and the highs are becoming shortselling opportunities. One thing I wanted to do for the majority of this change in trend was hold onto positions for longer than I think and for this type of position I have my stop above the text note that says sold short. Then as time goes on I will add to the position with equal amounts of size. What I learned about downtrends is that support points are often not respected and I can learn how to hang on to this for the whole day instead of just half of the day. This is a trade going with the carry trade and not against it. "Paid to Wait" For now the S2 and S3 levels I placed on previous charts are still valid because they are such an intense amount of distance away from current price at 1.17400
Remember from some of the earlier charts that I cited 12,018 to be a stiff resist point, it seems that we are on track to hit it but sailing through selling points should not be too much of a problem with all the momentum in the dollar currently. This chart definitely shows how much of the Euro is factored into the dollar index. The exaggerated tanks in the EUR side of the equation are making this Dollar index climb quickly. As far as FOMC, we'll see what happens with a before and after image of how the news impacts price tomorrow.
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