EJ

There are of course a few things to consider.

The eu summit of course

The New York session over the next days being thin due to the July 4th holiday In the USA this being a long weekend for many in America.

I trade asia for the most part and recently EJ has been good range trading both ways as it has been working out the larger trends.

Setting aside fundamental events for the moment

My view for this pair some while back has been that it would eventually retest the 50% fib on the daily chart at 103.53. I developed this view over a period of days although I am not one to marry any bias and have done well trading this pairs both ways. Initially this view was somewhat heretical to the norm but in recent days I have read several views with this slant. Lately the range trade has been profitable both ways ( in fact I must remember to send Angela a bottle of schnapps for allowing me to earn those pips again on the dip) In fact given the climate it should provide a safe way to earn before the summit.

Please understand I do not need to be right, just profitable. I will be trading this pair as I do everyday both ways.

I agree with Scott Barkley that the current range break is defined on the low side at 99.22 once/if/when the 99.35-30 level is cleared. It is a tough level and may hold up for sometime took five good attempts to break through that on the way up. On the topside although 99.60 has held for the moment there is a more solid level above at the 99.70-75 and 99.82 level above which may contain for a try or two. So a 30-40 pip range could be good earning overnight.

Of course one good press release or tape bomb could blow this out either way. Going into Thursday headline risk is high. Do be careful. TP early and often.

I welcome any and all comments or views on this pair especially ones contrary to mine.

On another note I was trying to find the post about EJ that Janos had generated so I could reference when I had first posted the daily chart. I could not find it or any of Janos's posts. If he has left fxstreet that would be a great loss to all of us. I will be looking more into this matter.

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Comment by Keith Shaw on June 27, 2012 at 5:18pm: Great charts Jim, well mapped out, interesting use of some technical tools we don't often see.

Comment by Jim Mathis on June 27, 2012 at 5:20pm: wondering if you'd notice the reaction lines on the 8 range

studying everyday trying to catch up

Comment by Keith Shaw on June 27, 2012 at 6:04pm: Didn't notice that Jim, 'I've never used range bars, as you mention so long as your profitable and its working for you, that's what counts. Will have to have a separate discussion on some of the stuff you are studying.

Comment by Jim Mathis on June 28, 2012 at 9:26pm: Great move last night in the EJ into the golden hour of Asia. I hope you got some of that. Made the wading through the tight overnight ranges worthwhile It is nice to be able to grab a big chunk all at one time as lately tight ranges have been the rule

Going forward, end of the week, end of the month, end of the half year, NY market session being thin as many off to holiday and the markets being suspectible to headline risk out of Eurozone anything can and will happen.

It is possible for the S&P to get a lil bounce through weeks end. (If your not sure if that is important you should overlay a s&P chart onto an ej chart or look at them side by side sometime.)

I have the 50% fib of that last fall at 98.91, bouncing against that now.
Trading both ways is always good for me in this pair. It could be that nothing is resolved before the weekend, or all the problems of the world are resolved in the next 24 hours. :)

My outlook has not changed long term and will not unless under 98.00 trades unabated.

I hope you all have some great trades