EURUSD Trading Strategy
One of most challenging part of this month is joining EURUSD uptrend. The last dip in the daily chart painted a bearish shadow, which triggered numerous attempts to long Euro Dollar. After some time we finally noted a dip in today’s session that may allow us to enter.
EURUSD Daily Chart
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EURUSD Daily Chart 07/02/17
The 21MA (in orange) provides the main support. After exploring EURUSD 4hr chart we have noted the top H&S that was affirmed and triggered the recent weakness (the dip). The target of the top H&S (1.0642) was not acquired. We cannot determine whether the market will reach 1.0642 or the gains may begin as soon as tomorrow’s session. On the market takes out 1.0805 further gains may be seen towards 1,0870. Tension around the upcoming elections in France were the trigger for the risk aversion mode we have witnessed this week.
EURAUD Weekly Chart
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EURAUD Weekly Chart 07/02/17
We have used the weekly support in the past to initiate long trades in EURAUD. The current dip is a re-test of the support, which is why a weekly close is not required. We refrained from initiating a long trade in the cross on Monday as we there were risks for 1.3942 to be tested, which was seen in today’s session. Although intraday entries are often meaningless in weekly entries the gains were halted at the intraday resistance. Similar to EURUSD, we cannot determine whether 1.3942 will be re-tested. Despite the resistance we also noted the positive divergence that may be sufficient to push the price above its resistance. We prefer entries where the odds for such re-tests are lower but these are the current market conditions.
CADJPY Weekly Chart
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CADJPY Weekly Chart 07/02/17
We will begin by stating we have also noted a similar entry in AUDJPY but refrained from initiating a long trade. The recent weakness is testing a fairly strong support level that we are expecting to hold. By the book the entry requires a weekly close. To be transparent, there is a potential short entry in USDJPY (daily chart). The short entry in Dollar yen is a weak entry that we are likely to avoid but it may suggest it is too early to initiate a long trade in CADJPY.
EURAUD Trade Alert
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EURAUD Weekly Chart II 07/02/17
EURAUD long at market price (1.4001)
Take profit: 1.4480
Protective stop: 1.3840
Risk Ratio (RR): 1 : 3 (approx.)
Estimated duration: 21 days
Note: This is a weekly entry. We cannot determine whether 1.3942 will be re-tested, we will absorb the retracement should it indeed occur.
EURUSD Trade Alert
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EURUSD 4hr Chart 09/02/17
EURUSD long at market price (1.0662)
Take profit: 1.0800
Protective stop: 1.0605
Risk Ratio (RR): 1 : 3 (approx.)
Estimated duration: 7 days
Both EURUSD and EURAUD triggered the protective stop loss orders. EURUSD uptrend was later affirmed in the Forex market, however, we were unable to join the anticipated rally.
Last Updated on May 27, 2017