EURUSD: Finding a Pattern for Profits
Posted on Friday, June 20th, 2008 | In Current Market News, Investing LessonsEURUSD: Finding a Pattern for Profits
Lots of times trading will reward you if you find patterns in historical price data and bet on it occurring again. It’s kind of like the whole “History repeats itself!” motto.
Of course, history doesn’t keep on repeating itself, especially in financial markets. But there is another motto to remember: “The trend is your friend!”
Here’s a trend for ya …
The euro has been on a dramatic run versus the dollar. This chart only goes back to the end of 2006, but the trend has lasted longer than that.
But being at such lofty levels, the $1.60 area to be exact, you start to wonder when a trend is winding down. So far, despite some weakness lately, this one still looks to be intact.
And the recent price action is just repeating price action before it. The first sectioned-off box of weekly price data is characterized by four things:
1) A new high followed by …
2) A sideways consolidation that ends with …
3) A big, one-week washout leading up to …
4) A breakout to fresh new highs.
The only thing we’re missing today is number 4). What are you betting on?
Regards,
Jack & JR
Last 5 posts by Jack Crooks
- Only Gold Is Winning the Ugly Contest - February 26th, 2009
- Stocks AND Dollar to Rally in the First Half? Keep Hope Alive - January 6th, 2009
- We’re Bullish on the US Dollar Today ... and Tomorrow! - January 5th, 2009
- Can we rest? Gold may lead the way. - December 22nd, 2008
- A super deal on the U.S. dollar - December 20th, 2008
![]() About Jack Crooks (http://blogs.moneyandmarkets.com/blog/currency-corner)
John (Jack) Crooks is the founder and president of Black Swan Capital, an independent advisory firm specializing in foreign exchange and currency markets investing for retail and institutional clients. A seasoned financial advisory with nearly 20 years of investment experience, Mr. Crooks uses both quantitative and qualitative approaches to determine the fundamental driving force(s) behind the movement of the currency, capital, and commodities markets. He is the editor of Weiss Research’s latest investment offerings, World Currency Alert and World Currency Options, which were launched in August 2007. Mr. Crooks also founded Ross International Asset Management, a discretionary money management firm specializing in global stock, bond, and currency asset management for retail clients. Previously, he was general manager of Plexus Trading, where he specialized in currency futures and commodities trading. During his successful career, Mr. Crooks served as chief currency and futures strategist of M2 Futures Inc., an investment boutique headquartered in Chicago, as well as vice president of Global Strategic Research for an international investment boutique, where he was responsible for providing daily advice and global strategy analysis. Prior to entering the investment arena, Mr. Crooks held various corporate finance positions. He has written extensively on the subject of global currencies and international economics and has been published in Asian Times, Futures Magazine, Barron’s, Bloomberg, Dow Jones Newswire, and across many financial websites. He has also appeared on Bloomberg TV and CNBC. Mr. Crooks holds a bachelor’s degree in finance from Florida State University and a master’s in business administration from the University of North Texas. |



