This is why I will continue to be selling into dips in the Euro

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[Scroll to bottom analysis of FTSE, DOW, GOLD and GBPUSD]

Look at this monthly chart…from 2008….it is a classic….Euros are still very much in their downtrend and I am expecting a break of 1.13 and a return to 1.05/03 and even lower after the retracement from the 2015 lows only hit the 38.2 Fib this year….

So I get my knickers in a twist over the long-term charts but today for my group and I wanted to put this out on YouTube because it is so important!

I’ve been ridiculed, I’ve been told, advised even, that fibonaccis do not work in markets, by those who do not work in markets. But what I can tell you is, in my 37 years of experience as a technical trader – not as a market maker, not writing options, not playing around with charts, but actually working in a bank on the live floor, that things are changing – stock market trends are changing.

I traded on the LIFFE floor, I traded in three major banks, I helped to start the Midland Bank off, I was the first lady manager that Nomura ever had and I was head of technical trading at Credit Suisse.

I’ve been self-employed now for 22 years trading for a living, and much of my trading on the Euro, let there be no misunderstanding the Euro is in a down trend.

This is the highest it got, and it went to 103 did we change trends here? No, it went to the 38.2, yes, with a double top at 38.2 and we’ve come down and broken through the 23.6 now, this is why we were short of the euro and is why I will continue to be selling into dips in the Euro.

This head and shoulder pattern is quite acceptable within such a long term chart, it’s a continuation pattern if you look at this on the weekly, you can see quite clearly as a top on the weekly charts.

But I like to go back in time, one of my strengths is to go back in time and see where the market is going to top out. I’ve caught this move in my trading years, and I’ve called this base from 2015.

I keep reports forever so it’s out there – I can’t get away from it – I can’t deny it it’s there for all to see so what I’m telling you now is this market is not looking good, it really isn’t and I think those that are waiting to go long at 1.13 are going to be misled and if it does bounce it really isn’t going to bounce a great deal because the overhead pressure in this market is to the downside. There is no doubt about that.

Everything I’ve learnt since 1983 is telling me that Euro is not long for this world at these high levels.  I’m not saying today it won’t go higher, I’m saying please have a look at the longer term view to see where it’s come from, now we’ve got this head and shoulder continuation pattern within this big pattern, but double topping on the weekly charts.  This isn’t a sermon, it’s something I am adamant I need to get out to you today.

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Links to Carol’s analysis of other markets for 23rd October 2018





2 Comments on "This is why I will continue to be selling into dips in the Euro"

  1. roundtheclocktrader | October 23, 2018 at 10:02 am | Reply

    Thanks Carol – great, concise commentary as always – all the best


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