EUR.USD 200 PIPS slide overnight - DailyFX Forex Forum

Walker E. · #1 (**permalink**) 07-10-2009, 09:15 AM

The eur.usd has taken nearly a 200 pip tumble from yesterdays high . On the chart below you can see the trend line and the decline associated with the 30ma crossing over the 120ma . Price is currently attempting to break upward from the 5min price channel .

On a two hour basis we can see our price channel making lower highss and lower lows . Price still remains under the 200ma on the 2hr seen below

Walker

JMSummers · #2 (**permalink**) 07-11-2009, 06:33 PM

Noticed in some of the commentary this week what seemed like a recurring theme or observation ... congestion or consolidation.

To me, this means significant volume trading in a very narrow range without appreciable price movement either way .. almost flat. But I'm not sure that is correct. And maybe these are two distinctly different concepts?

Can you shed some light on this market phenomenon (or phenomena if they are 2 distinct conditions)?

- Joe

Walker E. · #3 (**permalink**) 07-13-2009, 09:58 AM

Quote:

Originally Posted by JMSummers

Noticed in some of the commentary this week what seemed like a recurring theme or observation ... congestion or consolidation.

To me, this means significant volume trading in a very narrow range without appreciable price movement either way .. almost flat. But I'm not sure that is correct. And maybe these are two distinctly different concepts?

Can you shed some light on this market phenomenon (or phenomena if they are 2 distinct conditions)?

- Joe

Your absolutely correct in your opinion . Congestion , consolidation , bracketing etc. are all indicative of sideways price action . These conditions generally signal a major uncertainty of price direction . Typically you will find that when a strong range breaks the old range will typically serve as new support and resistance. I hope this helps !

Walker