Forex managed fund day trading risk.

Forex managed fund Day trading risk EurUsd As we feared yesterday, after a second failed attack on 1.3800 major resistance (and 50.0% fibonacci retracement of 1.2457-1.5145), EURUSD's slump through 1.3640 confirmed a short-term double-top formation on the hourly chart, and the subsequent sell-off has seen us dip to 1.3587 lows so far. Although former intra-range support is still anticipated below at 1.3530, the target of that double top is further down at 1.3460 (measured as the distance from the neckline to the highest peak, then subtracted from the neckline), not far off the critical 1.3425 support that has been in place since May 2009. Looking at the daily chart, we can't help but notice the parallels between this past month's price action and the earlier consolidation in Dec-Jan –which also failed to overcome the upper bound of the downtrend channel just before a collapse of nearly 8% in the subsequent 5 weeks. The evening star candlestick pattern on the daily chart also makes for uncomfortable times for EURUSD bulls. Ultimately, the fidelity of our current uptrend will be crucial to staving off another leg lower for this pair, and coincidentally, the lower bound of that channel comes in today at 1.3530 (note this is the same level as prior intra-range support). GbpUsd GBPUSD has come off considerably in the past day; predominantly a sell-off in sympathy with the move in EURUSD, but notably one which has negated GBPUSD's support zone at 1.5200-20, and fuelled a move lower to 1.5130 this morning. We can however, put a slightly more positive spin on the price action in GBPUSD; as our stochastic indicator is already in deeply oversold territory (although no crossover buy-signal has been forthcoming yet), and the hammer candlesticks on the weekly chart are suggestive that bearish momentum is waning. The short-term uptrend channel is seen around 1.5060, which is the nearest support on our radar below [...]

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