Hello traders,

I hope, that beginning of the week went alright for you, didn't it? What a both-side rally we've experienced yesterday on the pair!

But let's look more precisely on price action during first trading hours of Wednesday: 

That's what I've seen as I sat in front of the screen. There was a rather slow, consequent move down from the peak, that I've read with Elliott theory as a 5-wave, impulse structure. Honestly, I didn't expect that the price will return from 1.219 for 100 pips higher - but that's what we have to work with :)

According to the chart posted above, I've entered SELL from 1.2284 with SL put at 1.2291. YOu already know what happened a bit later: 

That's a very nice move (especially when you have your sell order opened!). I closed my sell orders at 63 and 56. Now, lets take even more deep look on that decline:

I suggest you look at support trendlines, starting from 82 and 73 - they could work good for target desicions. As for resistance (they're quite obvious in that case), I'd like to re-enter my sell from 65/70 area.

I'll try to bring some updates for you today, but need to go to Estonian embassy. Have a profitable trading!

Regards,

Rao Kh.

Views: 388

Comment by Rao Khassan on July 18, 2012 at 9:45am

EURUSD tested support line around 50 area for 4 times - and went below it, now trading at 1.2238. I think for now, that we can get back to 1.2210 area without having any significant correction!

Comment by Rao Khassan on July 18, 2012 at 10:11am

Until EURUSD holds below 1.2240, it heads to 1.2218 and 1.2208 supports. Once the level above is broken, I expect the pair reaches 1.2258 in correction move.

Comment by Rao Khassan on July 18, 2012 at 2:07pm

So its few minutes away from Bernanke testimony that is likely to push markets agressively. 

EURUSD has tested 1.2262 level and after 20 pips decline now takes a re-test. I've entered sell positionat 1.2258 with SL left at previous level 1.2291. Be careful, as the volatility got to be high.

Comment by Rao Khassan on July 18, 2012 at 2:10pm

There are some more resistance levels above, which could be tested during the nervous trade: 1.2267/72. Keep them in mind.

Comment by Rao Khassan on July 18, 2012 at 4:02pm

As I've mentioned two hours ago, EURUSD tested exactly these numbers: 1.2267 and 1.2272. Both times the pair didn't pass through it. I've added to my short position at 1.2266. 

Any other ideas on EURUSD?

Comment by Rao Khassan on July 18, 2012 at 4:06pm

If price manages to stay below 1.2271, there's gonna be a H&S formation on 5min EURUSD.

Comment by talisman on July 19, 2012 at 1:34am

i agree with chris c on this one. i think theres a little more room on the long side.  i traded this breakout up after a little double touch.  good luck to you.

Comment by Rao Khassan on July 19, 2012 at 11:08am

Hi Talisman, thanks for the comment.

As you can see, yesterday's sell closed with a stoploss. Today in the early morning I've catched buy from 1.2280 to 1.2312 and now examine the market for the actual direction.

Comment

You need to be a member of Forex Social Network to add comments!

Members

© 2018   Created by FXStreet.   Powered by

Badges  |  Report an Issue  |  Terms of Service

Offline

Live Video