I am sharing the trading plan for the Euro I have sent last week to my newsletter subscribers in the last mid-week update. I will update this plan tonight with what I expect in the Euro going forward.
‘This week price inverted direction from the price level at 1.2665. In the weekly video review for the Euro-Dollar FX I explained the reasons why we could have seen the lows in the Euro. For the time being I will assume the Euro has identified its support level (of course market can do anything and we could still see lower prices). I have identified two new reference scenarios to keep in mind (please refer to the below picture).
Scenario 1: we can anticipate price moving into the 1.2880 target and resistance level and then we could see a swift move lower of 1 or 2 days with price moving into the 12700 area again. This would be a sort of retest of lows allowing European desks to load up longs. If some big players still need a fill in the Euro expect this scenario (the high probability scenario). After the re-test of lows we should see the new leg higher in the Euro starting.
Scenario 2: if the big money has already had the possibility to load up the boat (I am not sure this is the case and this week is a low volume and low participation week and price is easy to manipulate) price could just keep moving higher into the extension target at 1.2930 and then keep trading in extensions, with the next support level at 1.2930.
For indication on the Dollar Index watch tonight’s Mid-Week update (read below if you are not already a newsletter subscriber).’
Thus scenario 2 played out and I think we can rule out the scenario 1 for the time being.
I send my free Newsletter on Sundays and mid-week updates on Wednesdays along with other information. This week I will send the mid-week update on Thursday (tonight) and you are still in time (see an example here). The newsletter typically includes: a weekly review for the Euro-Dollar cross, my FibStalker View on Currencies focusing on Forex pairs, articles on my trading method, market commentaries and HFT/Program Trading. Please, register here to receive the free weekly newsletter.
If you like this article, please share it with your friends and fellow traders. Thank you.
If you want to receive such videos, please subscribe my free newsletter.
Thank you in advance for subscribing should you decide to do so. Lots of other people are doing the same.
If you intend using the information provided in this post and in my blog for your trading please do your own diligence, find the advice of a trading professional and trade at your own responsibility. The information provided here is for educational purpose only. Please read the Disclaimer and accept all the risks. Thank you.
Have a great evening.