I am sharing the trading plan for the Euro I have sent last week, on January the 2nd, to my newsletter subscribers in the last mid-week update (see an example here) . I will update this plan tonight with what I expect in the Euro going forward. I will also project Euro prices into the next 2 months period using the Program and Algorithmic Trading rules found in my Trading Method.
The Euro kept moving laterally in the last two weeks. It has a support level in the 1.3180 area with a failure level and key threshold to watch at 1.3140. Below that level the two scenario identified below can play out (please refer to the below picture ).
Scenario 1: below 1.3140 price can retrace into the 1.3110 where it should find participation at the next logical level of support where Program Trading and Algorithmic Trading and professionals will be waiting price to re-start buying into longs. Price should thus start moving higher again from this level.
Scenario 2 (currently playing out): Below the 1.3050 level price would keep sliding into the 1.3000 which is another important support level. Again this level is widely watched by Program Trading and Algorithmic Trading and professionals will be waiting price to re-start buying into longs. Price should thus start moving higher again from this level. Should price move below 1.2920 we will need to re-evaluate the situation. I do not anticipate this happening at the moment.
As I commented in today’s video analysis of the Euro FX futures, the second scenario is currently playing out.
For indication on the Dollar Index, tightly related to the Euro-Dollar cross, please watch tonight’s Mid-Week update (watch here an example related to the December 20th, 2012 analysis). Read below if you are not already a newsletter subscriber.
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 what I am going to share tonight). 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.
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