In this brief post I share a chart of the EUR/USD showing a further of the EUR/USD strategy blueprint offered at the beginning of 2014. Particularly, this chart follows up on that published for the EUR/USD on January 14th, 2014 and shows a very good setup available as I write.
As you may know price confirmed the first target at 1.3320 and I am quite confident it will continue into the 1.2970 area (accordingly to the blueprint and strategy for the beginning of year 2014 given for the Euro on Friday January 3rd in an interview at the FXStreet.com LAR).
The above picture shows a setup currently in play with a risk of around 35 pips and a potential fo 220 pips profit, thus providing a R/R (reward to risk) > 6.
This trade is presenting as I write this post. The EUR/USD is in fact moving in extensions on the daily and 240min timeframes.
A good entry is at current levels (1.3520) with stops above 1.3555, or around 35 pips stop.
Target is down at the 1.3325 level, for a 220 pip run or a R/R of 6. The 1.3320 area should see participation but produce only a shallow reaction.
Remember that, if there are no major changes, the Euro is due to see the 1.2970 area before weekly longs kick in again. Please review the EUR/USD Blueprint and Strategy for 2014 video.
Notice that price projections in my method are not from/to random levels and do not follow Elliot Wave, DiNapoli levels or other methods, but rather a proprietary method based on modeling effects of Program and Algorithmic Trading on price.
My method helps “level plain” the trading game showing what banks, institutions and big hedge funds are actually doing (and not what they are saying they are doing). Follow me to learn how to spot the Algorithmic Trading footprints.
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Have a great evening.
Giuseppe, the FibStalker