I thought I would share my Euro Trading plan I have sent last week to my Newsletter subscribers. Before proceeding if you want to get some background information on where the Euro is headed, take few minutes to read the following interesting articles (they are short):
- This time is not like 2009 and 2010 for the Euro FX!
- Where is Euro price headed? Is this time like 2009 and 2010?
So what is price going to do? Later on I will send the latest plan to my subscribers and you can receive it for free (read below).
Last week’s plan and article follows. With exception of the Obama re-election knee jerk reaction higher, Scenario 1 highlighted last week played out. Read on.
‘This week I see two scenarios quite simple and I am going to present them in remaining of this article. We cannot anticipate price because we don’t know what it is going to do and we should expect anything, but we must be prepared to any possible outcome and know what to do in each case.
The picture below gives an idea of what we can expect. I have identified a few price levels we need to keep in mind during the trading week. It is always a battle at important levels and we need to know what it is happening to be able to take the correct decisions and act. As traders we are paid for the quality of decisions we make and knowing the key levels and what to do when they are violated is paramount.
I will keep watching these levels and I will also post a special mid-week update to subscribers with changes to this plan. An important level to watch is 1.2850 at the beginning of the week. In the first scenario (continued move to the downside) we should see bears defend this level (1.2850), thus price should not climb above it. If that is the case we could see a move into 1.2730 before a bounce. Below 1.2730 we should almost certainly see price moving onto the 1.2630 support area. In that case any bounces into the 1.2800 area should be sold to bring price into the 1.2630 area. Once here, we should witness the start of the next intermediate move higher in the Euro (to be verified anyway).
If 1.2850 is violated on the upside at the beginning of the trading week, it is possible for price to continue higher into the next level to watch, i.e.1.2950. The violation on the upside of this level (scenario 2) would mean that the 1.2820 area offered support to price and the next leg higher would have already started. I think it is going to be an exciting week!’
I don’t expect price to stop in the middle within a sort of limbo. Now that the 1.2737 level has been violated on the downside price is going to test the 1.2620-30 level. If you keep following me I will be able to identify the levels we need to watch and I will write and tweet about them. This weekend I am going to elaborate and dwell on more on this topic. Hope you find this interesting and if so, you can subscribe my newsletter to know and learn more about it
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Have a great evening.