EUR/USD Update – Globex Sunday Night Session
Interesting stuff happening in EUR/USD. We are still within the small uptrending channel within the big downtrending channel. However, we are at a point where decision needs to be made soon. The upper line of the downtrending channel and the lower line of the uptrending channel are about to intersect creating a squeeze. As a result, one of those two lines gets busted. Which one is it going to be – being the wise one, I DO NOT KNOW. However, we should have a resolution soon after trading starts in Europe.
This is what the hourly chart of EUR/USD looks like:
If we zoom into the portion on the right, this is what we can see. We have had a small breach of the uptrending channel – let us see if this breach holds. If it holds, then the next key level n the downside is 1.3800. If the small big channel gets busted to the upside, then the key level is 1.4100. If you liked what you saw, please do share some love 
UPDATE Jun 21, 2009 6:30PM PT: As I fight with my internet connection, I can see on my cell phone that EUR/USD has dipped another 20 pips taking ES and NQ into red.
UPDATE Jun 21, 2009 7:00PM PT: Someone pointed out to me that the mini uptrending channel could be drawn with a less steep angle. Here is what the chart looks like if that channel is drawn in the alternate manner. In fact I like this less steep channel as it has less breaches to the upside and the downside. However, this does not change the big picture, which is that we are at a point where we are about to see a resolution one way or the other… Of course, one has got to watch out for head-fakes.
UPDATE Jun 21, 2009 11:17PM PT: As of this moment, EUR/USD is down 81 pips, GBP/USD is down 45 pips and the dollar index /DX is still down – I don’t get this ????
