EURUSD 12-20-06

12-20-06

EURUSD

As Maxwell Smart once said, " missed it by that much". I waited for the pullback that never came. I did not want to take the breakout trade at 1.3106, so I missed a great opportunity to enter the EURUSD at the bottom of the weekly range, and I passed on a breakout past the first area of supply yesterday morning. In defense of myself, I can chalk it up to the near impossibility of a single person to trade a 24 hour market for missing the weekly low at 1.3051. The pullback trade would have been the safer entry, but you need a breakout strategy in the currency markets to catch big moves like the one from yesterday. Anyway, the EURUSD will need to base near the 1.3240 area before it attempts to move higher to the next area of supply at 1.3265. It has already moved up 30 pips overnight, so that should be the range it trades in for the balance of the morning today. I will let the EURUSD base today and see if it stays up here or if the US Dollar Index bounces off the 83.33 breakout support area and brings the EURUSD down to the 1.3170 area instead.