EUR/USD fell more than 150 pips since my last post, invalidating my long entry. Although the play didn't work out and the pair signed new lows, the scenario isn't changed that much. EUR/USD is oversold and it's near a support zone. I will wait for additional confirmation signals. There are also other currencies near support against the U.S. Dollar:
With many pairs near support zones, the U.S. Dollar Index could find resistance in its uptrend, which has been very steep. The index is also near previous high:
A retracement of the U.S. Dollar from recent highs would favour commodities and commodities-related names, which sold-off sharply during recent weakness on major indexes. Proximity of support zone and some strength on commodities could favour especially NZD and AUD, which are the most beaten down currencies this month losing -7% and -6.5%.
I bought Facebook (FB) shares last Wednesday, with an entry price of $78.26. I was looking for an entry long on the stock since time and I liked its behaviour during recent weakness on indexes. The price indeed held up very well near its all time highs, touched the 50 days SMA and was above the 10,30 and 50 days SMAs that were all pointing up. I thought it was a good time for a breakout play, anticipating that a rebound on major indexes would provide the volume necessary for a strong up-move. I didn't wait for the breakout and bought the stock near highs. After my entry the stock retraced, mimicking major indexes' behaviour, but on Friday finally averages rebounded as did Facebook. The price is currently again near its highs and there are good possibilities of a breakout. If new highs would be negated, I will re-evaluate my position.
I bought Facebook (FB) shares last Wednesday, with an entry price of $78.26. I was looking for an entry long on the stock since time and I liked its behaviour during recent weakness on indexes. The price indeed held up very well near its all time highs, touched the 50 days SMA and was above the 10,30 and 50 days SMAs that were all pointing up. I thought it was a good time for a breakout play, anticipating that a rebound on major indexes would provide the volume necessary for a strong up-move. I didn't wait for the breakout and bought the stock near highs. After my entry the stock retraced, mimicking major indexes' behaviour, but on Friday finally averages rebounded as did Facebook. The price is currently again near its highs and there are good possibilities of a breakout. If new highs would be negated, I will re-evaluate my position.
DISCLOSURE: The author is long Facebook