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Sunday, January 22, 2012

How to trade using multiple-time frames (based on the current EUR/USD example)

The single European currency tried to rally last week but failed at the indicated Fibonacci pivot at 1.2870 and declined again. If you take a look at the daily chart, you will see a nice pattern of lower lows and lower highs. You will also see that the prices are below the declining 21-day moving average. All that tells us that EUR/USD is still in strong Short-Term downtrend.

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