EURUSD – liquidity gap fill to the downside in progress?

I like this chart of EURUSD for the last week, it shows a possible weekly time frame pin bar being formed on the 1H chart, the only thing EURUSD needs to do is finish the week near the current levels, which is by no means a certainty. The chart demonstrates some of the patterns found at the www.nobrainertrades.com web site, which is a great resource for forex traders. The spike base pattern is one that I like to keep my eyes peeled out for on 1H and 15m and 5m charts because it repeats a lot (http://www.nobrainertrades.com/2009/06/spike-base-pattern.html). In this environment where EURUSD is capable of trading like a yo-yo between EU debt concerns and the laundry list of USA concerns (debt ceiling, QE speculation/anticipation etc.) the pattern becomes that much more important since liquidity gaps crop up as a result of ad-hoc news (comments on wires by central bankers, bond auction results, rating agency downgrades, etc. etc.).

If EURUSD wants to print a pin bar for weekly chart this week, maybe on Friday it will try and print a pin bar too, perhaps by tagging the 1.4090s area (Missed Daily pivot from Tuesday)….

Image001

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: