Big Dogs heavily short...

The short bias on the euro is still the way to go – i.e., selling the rallies in the downtrend. With the Big Dogs being heavily short with their sentiment, this is obviously the way to go. Now, I’m not saying you can’t, or shouldn’t, trade the retracements to the long side, as price saw-tooths its way southward to the 2480 level, or thereabouts – if you know how to do that, and what you’re doing. But, the easiest thing to do, if you’re a novice at this, is to simply wait for a rise in price against the trend, and look for a good entry point to go short.

Take today, for example. The 4 hour chart last night reflected bearishness (MACD), and the 200 EMA was trending down. Ensuing positive divergence on MACD on the 15 minute saw the EUR/USD pair spike up to the 200 EMA at the London open, where it met resistance – and was repelled at the central pivot point.

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See today's Chart at AM Video Review

-Seth Gregory for the vacationing Peter Bain