Quote of the day: “Experience is the name every one gives to their mistakes.” – Oscar Wilde
EURUSD – 1.3722 @07:52 GMT
Good morning. The recovery continues after yesterday’s wild movements and the euro is flirting with 1.3750 at time of writing. A break above the said upside barrier will be an important bullish confirmation – next objectives coming at $1.40 and $1.42. One of the key events in the Forex Calendar today is Trichet’s speech at 17:00 GMT and the market seems to price in more hawkish comments – following ECB’s Yves Mersch boosting the EUR yesterday. Buying on break above 1.3750 looks like a decent plan right now.
Trading strategy: looking to buy on 4hrs bar close above 1.3750, stop at 1.3690 (0.5% risk), 1st objective at 1.3820, 2nd objective at 1.3900
Support: 1.3700, 1.3650, 1.3550/80 and 1.3500
Resistance: 1.3750, 1.3800/20, 1.3860 and 1.3900
Market sentiment: long term – mixed, medium term – bullish, short term – bullish, intraday – bullish
- EURUSD 4hrs chart 2-23-2011
Have a great day and good luck trading
Nice analysis! When it does close above that 1.3750, do you think perhaps it is better to wait for the price to make another pullback to the previous resistances areas and then go long from there or just enter the market to the long side whenever the price closed above that area?
Hi
preferably on pullback. I don't wait for pullbacks only when price breaks above a level due to some important news that's likely to cause a large move.
Other times I enter half position on bar/candle close above resistance level and waiting to trigger the second half entry on pullback, so full position size is at average price of that pullback – which is still a good entry – not really adding to a loss, since the plan from the beginning was to enter 50% here and 50% there.
hey, you says that you "looking to buy on 4hrs bar close above 1.3750". Does it mean that you are waiting until the 4hr candle closed and if the next candle moves over the previous candle only then you go long?
in concening to yesterday that means you didn´t open positions in this case.
sry for my english, i´m german.
thanks for your analysis!
Hi
If a 4hrs candle closed above the level, then I see it is a good buy. Usually buying on pullback when price retests that level after it closed above it. Most of the times price pulls back.
I wrote in my today's article that I entered the trade already.
Pingback: EURUSD Pulling Back from 1.3750 Resistance Zone | FX Trading Blog - innerfx.com
ah ok thank you! whish you good luck for your open eurusd- trade!
thanks
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Oanda traders must have nerve of steel. They are long USD. http://fxtrade.oanda.com/analysis/open-position-r…
Yep. Different brokers – same story: http://www.zerohedge.com/article/trade-against-re…
Same old story: buy low – sell high. Been there, done that. :D
Are they hoping for better US numbers later today, looking forward to tomorrow's Irish election or just ahead of the market?
Pingback: EURUSD Targeting 1.3860; Weekly Close Above 1.3750? | FX Trading Blog - innerfx.com
Pingback: euro celuje w 1.3860. Tygodniowe zamknięcie powyżej 1.375? | m.m.montwill&co; abwehra group