Observation on the EURUSD up to 03-06-2008

For some time now, I have found that linear support and resistance levels are not giving the best of results in some of the assets. On the other hand, if you create a slanted set of parallel lines, you can get much better correlation and reaction points. To show this, I have decided to bring a daily chart of the EURUSD:

Look how the violet support and resistance are not really helping when trying to coordinate entries or exits from positions. The blue lines, representing my "slanted" S-P concept have been working very nice. This could be referenced as "channels" but their number and span is not suitable for it.

I have marked many of the touching points with brown circles. By this tool, we can predict, with a good amount of confidence that the best target for the pair to arrive to will be near 1.5250.



Disclaimer

By no means do any part of this article recommends, advocates or urges the buying, selling or holding of any financial instrument whatsoever. Trading and Investing involves high levels of risk. The author and his company express personal opinions and will not assume any responsibility whatsoever for the actions of the reader. The author may or may not have positions in Financial Instruments discussed in this article. Future results can be dramatically different from the opinions expressed herein. Past performance does not guarantee future results. The content of this article was created with the best known data at the time. The writer and his company are not responsible for the accuracy or completeness of the mentioned data. The writer is not a registered consultant of any kind and so the reader should not see any single part or the whole analysis as an advice for any kind of action in the financial markets.
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Moshe Shalom Head of Technical Analysis Department ForexManage Ltd Site: www.forexmanage.com Email: This email address is being protected from spam bots, you need Javascript enabled to view it