December 12, 2008
EUR/USD Pair Turns Bullish On The Daily Chart
There was an interesting development on the EUR/USD pair yesterday as the Supertrend indicator turned green on the daily chart. Why is this significant? Well if you are familiar with my trading strategy (available by subscribing to my newsletter), you will know that I place great faith in the daily Supertrend of a particular pair because it tells me which way I should be trading on the 4 hour chart.
So therefore the positive Supertrend on the EUR/USD automatically means that I shall only be looking to take long positions on the 4 hour chart while this positive Supertrend remains intact.
This change in trend could be significant because the Supertrend has been negative since October 2, so we could potentially see a sustained rise to around the 1.40 mark. It's hard to be too confident because this pair has fallen substantially in the last few months, but it could well creep upwards towards it's EMA (200) which is again just above the 1.40 level before reversing back down again.
Elsewhere the GBP/USD is still in a negative Supertrend on the daily chart as is the USD/JPY pair, so I'm still looking to take out short positions on these two pairs for the time being.